Details

Autor(en) / Beteiligte

• Slovic, Paul
• Fischhoff, Baruch
• Lichtenstein, Sarah
• Corrigan, Bernard
• Combs, Barbara

Titel

Preference for Insuring Against Probable Small Losses: Insurance Implications: ABSTRACT

Ist Teil von

• The Journal of risk and insurance, 1977-06, Vol.44 (2), p.237

Ort / Verlag

Malvern: Blackwell Publishing Ltd

Erscheinungsjahr

1977

Quelle

EBSCOhost Business Source Ultimate

Beschreibungen/Notizen

• A series of laboratory studies of insurance decision making shows that people buy more insurance against events having a moderately high probability of inflicting a relatively small loss than against low-proba-bility, high-loss events. Two explanations are discussed, both contrary to traditional utility theory. One postulates a utility function convex over losses. The second asserts that people refuse to protect themselves against losses whose probability is below some threshold. This research provides insight into other, often puzzling, facts about people's insur-ance behavior. Relevance for public policy is discussed.