The affection effect in an incentive compatible insurance demand experiment

Aseervatham, Vijay; Jaspersen, Johannes G. und Richter, Andreas (2015): The affection effect in an incentive compatible insurance demand experiment. In: Economics Letters, Bd. 131: S. 34-37

Abstract

Experimental studies have documented an affection effect in general decisions under risk as well as in insurance demand decisions. Most studies reporting this effect have not used salient and incentive compatible payments for the subjects. This might have skewed the results in favor of the hypotheses. In this note we revisit the affection effect in an insurance demand experiment with incentive compatible payments. We find the effect to be robust to the new experimental design further corroborating the established result of the affect heuristic in insurance decisions.

• Dokumententyp: Zeitschriftenartikel
• Fakultät: Betriebswirtschaft > Institut für Risikomanagement und Versicherung ; Betriebswirtschaft > Professorship for Behavioral Risk Management and Insurance
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• ISSN: 0165-1765
• Sprache: Englisch