For products that require skills to use, such as computers, cell phones, and sports equipment, consumers’ purchase and usage decisions often depend on their prediction of the speed with which they will master the relevant skills. In this article, we identify a systematic pessimism in...

We examine purchases of extended service contracts, which are essentially insurance products, for electronic products in a retail setting. The primary insurance purchase determinants are perceived probability of loss, extent of loss, risk aversion, and amount of insurance premium. We examine how...