The threshold approach to medical decision-making, in which treatment decisions are made based on whether the probability of sickness exceeds a predetermined threshold, was introduced by (Pauker and Kassirer, N Engl J Med 293:229-234, 1975) and (Pauker and Kassirer, N Engl J Med 302:1109-1116,...

This study considers the optimal demand for insurance in the presence of state-dependent background uncertainty. Its uncertainty depends on the states that are clarified by the loss occurrence, which are called the loss state and no-loss state. First, we consider a situation in which the...

This study examines the effects of cream skimming using telematics devices on the automobile insurance market. Insurers can directly monitor insureds’ cars for risky driving behaviors, such as speeding, hard braking, and quick acceleration. These observations make the information symmetric...

It is important to distinguish between an individual’s risk preference in fluctuations in their payoffs and social preference for considering others’ payoffs behind the veil of ignorance (VoI). In this study, we adapted Schildberg-Hörisch’s (2010) experimental design by applying it to the...