| Description |
1 online resource |
| Physical Medium |
polychrome |
| Description |
text file |
| Summary |
"This book examines the behavior of individuals at risk, insurance industry decision makers and policy makers involved in the selling, buying, and regulating of insurance"-- Provided by publisher. |
| Bibliography |
Includes bibliographical references and index. |
| Contents |
Cover; Insurance and Behavioral Economics; Title; Copyright; Contents; Preface; Acknowledgments; Part I Contrasting Ideal and Real Worlds of Insurance; 1 Purposes of This Book; The Roots of Misunderstanding of Insurance; Comparing actual behavior with Benchmark Models; Summary; 2 An Introduction to Insurance in Practice and Theory; Four Examples of Insurance Behavior in Practice; Insurance and the U.S. Economy; The Benchmark Model of Supply; Fundamental Principles of Insurance Supply; The Law of Large Numbers, Insurance Supply, and Competitive Equilibrium; Solving Two Interrelated Problems. |
|
The Benchmark Model of DemandDemand for Insurance using the Expected Utility Model; Choosing Optimal Deductibles; Summary; 3 Anomalies and Rumors of Anomalies; Insurance in the Media; A Short Tour of Studies on Behavioral Models and Insurance Anomalies; The Elements of Anomaly: A Hypothetical Example; Defining Anomalies; Types of Anomalies; Demand-Side Anomalies; Supply-Side Anomalies; Summary; 4 Behavior Consistent with Benchmark Models; Relevant Assumptions for Examining Behavior; Automobile Collision Coverage; Renters' Insurance; Term-Life Insurance; Summary; Appendix to Chapter 4. |
|
Estimate of Voluntary Collision Purchase Using Consumer Expenditure Survey DataStep One: Estimate a premium equation using those individuals with financing.; Step Two: Use the model to predict premiums for those purchasing cars without financing.; Step Three: Compare actual and predicted premiums to infer the percentage purchasing collision coverage.; Part II Understanding Consumer and Insurer Behavior; 5 Real-World Complications; Search Costs; Mistakes and Anomalous Behavior; Information Imperfections and Asymmetry; Imperfect Information about Risk. |
|
Information Asymmetry and Adverse SelectionAdverse Selection in Practice; Information Imperfection and Moral Hazard; Effects of Correlated Risks on Insurance Supply; Role of Reserves in Dealing with Correlated Losses; Equilibrium of Insurance Firms and Capital Markets; Relationship to Mutual Insurance; Implications for Insurer Supply Behavior; Summary; 6 Why People Do or Do Not Demand Insurance; Prospect Theory and the Demand for Insurance; The Value Function; The Weighting Function; Explaining Insurance Anomalies by Myopic Loss Aversion; A Goal-based Model of Choice; Role of Goals and Plans. |
|
Taxonomy of Insurance-Related GoalsOther Behavioral Explanations; Summary; 7 Demand Anomalies; Seven Anomalies; Failure to Protect against Low-Probability, High-Consequence Events; Purchasing Insurance after a Disaster Occurs; Cancelling Insurance if There Has Been No Loss; Preferences for Policies with Rebates; Preference for Low Deductibles; Unwillingness to Make Small Claims above the Deductible; Status Quo Bias: A Natural Insurance Experiment; Insurance Markets in which Demand Differs from the Benchmark Model; Flight Insurance: Insuring Specific Risks; Rental Car Insurance. |
| Local Note |
eBooks on EBSCOhost EBSCO eBook Subscription Academic Collection - North America |
| Subject |
Risk (Insurance)
|
|
Risk (Insurance) |
|
Insurance -- Decision making.
|
|
Insurance -- Decision making. |
|
Insurance. |
|
Consumer behavior.
|
|
Consumer behavior. |
| Genre/Form |
Electronic books.
|
| Added Author |
Pauly, Mark V., 1941-
|
|
McMorrow, Stacey.
|
| Other Form: |
Print version: Kunreuther, Howard. Insurance and behavioral economics. Cambridge : Cambridge University Press, 2012 9780521845724 (DLC) 2012006486 (OCoLC)779529972 |
| ISBN |
9781139624725 (electronic book) |
|
1139624725 (electronic book) |
|
9781139050319 (electronic book) |
|
1139050311 (electronic book) |
|
9781139615426 |
|
1139615424 |
|
9781139611701 (e-book) |
|
1139611704 (e-book) |
|
9780521845724 |
|
0521845726 |
|
9780521608268 |
|
0521608260 |
|
9781283871082 |
|
1283871084 |
| Standard No. |
40021962572 |
|
