Can measured risk attitudes and associated structural models predict insurance demand? In an experiment (n = 1,730), we … insurance choices over different loss probabilities and prices. The insurance choices show coherence and some correlation with … various risk-attitude measures. Yet all the structural models predict insurance poorly, often less accurately than random …

Can measured risk attitudes and associated structural models predict insurance demand? In an experiment (n = 1,730), we … insurance choices over different loss probabilities and prices. The insurance choices show coherence and some correlation with … various risk-attitude measures. Yet all the structural models predict insurance poorly, often less accurately than random …

risk averse anymore even if utility from divisible consumption is concave. I propose a definition of insurance in the … context of state-dependent preferences and investigate the different motives underlying insurance demand. The same reasons … that bases insurance demand on risk aversion with important implications for policy and research. …