This paper suggests insurance represents a quid pro quo transaction across states of the world and is purchased to … insurance-purchasing gambler. The implications are that insurance is far more valuable than conventional theory suggests, and …

-impact risks or for insurance contracts exposed to nonperformance risk …Probability weighting is often used to explain insurance choices that conflict with expected utility (EU) preferences …. We derive new theoretical results on the effects of probability weighting in the context of common insurance demand …

when risk is involved, even when full information is available. A simple normative analysis of decisions about insurance …Consumers face many decisions involving risk, yet some researchers claim that consumers cannot make rational decisions … consumers to choose insurance policies with higher deductibles. Possible computer expert systems to help consumers make …

the internal margin, i.e., the strength, of loss aversion, and empirically study the relation between income risk …-income population of Bogotá, characterized by limited financial education and subject to substantial income risk. In line with the … theoretical predictions, we find that an increase in income risk is associated with higher savings for loss-averse individuals …

coronavirus models. The micro model consists of two functions, a risk averse utility function depending on wellness and a wellness …