Individuals tend to underprepare for rare, catastrophic events because of biases in risk perception. A simple form of broad bracketing--presenting the cumulative probability of loss over a longer time horizon--has the potential to alleviate these barriers to risk perception and increase...

Default options may provide a low-cost way of influencing behaviour without modifying incentives and constraining choices between alternatives. We study whether defaults can be used to increase insurance coverage against low-probability/high-impact risks, like floods, and whether past flood...