Near-losses in insurance markets: An experiment

Heinrich, T; Seifert, M; Then, F

doi:10.1016/j.econlet.2019.108781

Near-losses in insurance markets: An experiment

Heinrich, T; Seifert, M; Then, F

Authors

T Heinrich

M Seifert

F Then

Abstract

Several studies report changes in risk attitudes following losses that have been nearly averted. We disentangle strategic and non-strategic reactions to such near-loss events experimentally. We ob-serve that near-losses affect the demand for insurance under strategic uncertainty: the bids and asks for insurances increase in a call market after subjects experience near-losses, while individu-al evaluations of insurances are unaffected.

Citation

Heinrich, T., Seifert, M., & Then, F. (2020). Near-losses in insurance markets: An experiment. Economics Letters, 186, Article 108781. https://doi.org/10.1016/j.econlet.2019.108781

Journal Article Type	Article
Acceptance Date	Oct 20, 2019
Online Publication Date	Oct 31, 2019
Publication Date	Jan 31, 2020
Deposit Date	Sep 3, 2019
Publicly Available Date	Apr 30, 2021
Journal	Economics Letters
Print ISSN	0165-1765
Publisher	Elsevier
Peer Reviewed	Peer Reviewed
Volume	186
Article Number	108781
DOI	https://doi.org/10.1016/j.econlet.2019.108781
Public URL	https://durham-repository.worktribe.com/output/1294259

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Publisher Licence URL
http://creativecommons.org/licenses/by-nc-nd/4.0/

Copyright Statement
© 2019 This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/