A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2019; you can also visit the original URL.
The file type is application/pdf
.
Inferring Risk Perceptions and Preferences using Choice from Insurance Menus: Theory and Evidence
[report]
2015
unpublished
Demand for insurance can be driven by high risk aversion or high risk. We show how to separately identify risk preferences and risk types using only choices from menus of insurance plans. Our revealed preference approach does not rely on rational expectations, nor does it require access to claims data. We show what can be learned non-parametrically from variation in insurance plans, offered separately to random cross-sections or offered as part of the same menu to one cross-section. We prove
doi:10.3386/w21797
fatcat:r7wiymkawjhpvb4qknruyideq4