Technological progress has improved insurers' ability to monitor policyholders and has led to usage-based insurance (UBI) contracts that incorporate behavioral risk factors in pricing. Economic theory predicts that any informative monitoring signal should be adopted in equilibrium (see Shavell,...

Strict liability is widely seen as the most suitable way to govern highly risky activities, such as environmentally dangerous production or genetic engineering. The reason which is usually given for applying strict liability to these areas, is that not only efficient care is supposed to be...

Der Abschied vom homo oeconomicus -- Ausgewählte kognitive Verzerrungen und Heuristiken und ihr Bezug zur Versicherung -- Ein zweiter Blick auf die Risikoaversion -- Populäre deskriptive Modelle und damit erzielte Resultate -- Zusammenfassung und Ausblick.

We use the German Socio Economic Panel to analyze the impact of life changing events on individuals’ risk tolerance levels over time, which is reported in response to a question on individuals’ willingness to take risks. The dataset follows a representative sample of the German population....