Fink, Alexander; Pingle, Mark - In: Public Choice 160 (2014) 3, pp. 481-499
In the developing world, kidnapping is relatively common, and a market for kidnap insurance has arisen in response. We … because it benefits a risk-averse family, as long as the introduction of insurance does not increase the risk of kidnapping … too much. Families should fully insure if purchasing insurance does not increase the probability of kidnapping, and …