Can measured risk attitudes and associated structural models predict insurance demand? In an experiment (n = 1,730), we … parameterize seventeen common structural models (e.g., expected utility, cumulative prospect theory). Subjects also make twelve … insurance choices over different loss probabilities and prices. The insurance choices show coherence and some correlation with …

results on the impact of ambiguity on insurance demand for low probability risks. Lastly, our experiment provides a clear … compensation schemes and ambiguity on insurance and self-insurance decisions. Consistent with theory, we find that government … compensation programs. For example, results from our experiment confirm the prediction that the WTP for insurance is smaller under …

I revisit the question of which motive underlies insurance demand. I draw on the literature of state-dependent utility … and on the literature of imperfectly divisible consumption to argue that the general purpose of insurance is not a risk … transfer, but meeting a conditional need. In this way, insurance aligns the risk in one's ftnancial endowment with the risk in …