Insurance and Perceptions
How to Screen Optimists and Pessimists
Bibliographic Data
| ID | 9706486 |
|---|---|
| Authors | Johannes Spinnewijn (0000-0002-7963-5847, London School of Economics and CEPR, corresponding author) |
| Year | 2013 |
| Volume | 123 |
| Issue | 569 |
| Pages | 606-633 |
| Publication date | 2013-06-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/ecoj.12008 |
| OpenAlex | W3125447991 |
| Language | EN |
| Citations received | 5 |
| References cited | 38 |
People have very different beliefs about the risks they face. I analyse how heterogeneous risk perceptions affect the insurance contracts offered by profit‐maximising firms. An essential distinction is how risk perceptions affect the willingness to pay for insurance relative to the willingness to exert risk‐reducing effort. This determines both the sign of the correlation between risk and insurance coverage in equilibrium, shedding new light on a recent empirical puzzle, and the type of individuals screened by either monopolistic or competing firms. Even with perfect competition, heterogeneous risk perceptions may well strengthen the case for government intervention in insurance markets
Actuarial science · Affect (linguistics · Business · Economic interventionism · Economics · Insurance policy · Key person insurance · Microeconomics · Monopolistic competition · Monopoly · Perception · Pessimism · Politics · Public economics · Risk perception · Willingness to pay · Healthcare Policy and Management · Insurance and Financial Risk Management · Law, Economics, and Judicial Systems
Imperfect Private Information in Insurance Markets
Risk Perceptions and Private Protective Behaviors
Pessimistic information gathering
Effect of Prevention Focus on the Relationships Among Driving Accident History, Risk Perception, and Consumers’ Automobile Insurance Coverage Decisions
Silver Spoons and Platinum Plans
Equilibrium in Competitive Insurance Markets
Measuring Expectations
Shrouded Attributes, Consumer Myopia, and Information Suppression in Competitive Markets
Aggregation and Linearity in the Provision of Intertemporal Incentives
The Perception of Risk
Hurricane risk perceptions among Florida's single family homeowners
Sources of Advantageous Selection
Testing for Asymmetric Information in Insurance Markets
"The Market for "Lemons
| Citations per year | 0.45 |
|---|---|
| Citation span | 2015 - 2026 (12) |
| Highly cited | No |