The Probability of a Loss Occurring Can Be Reduced by

Journal of Risk and Uncertainty

periodical article

Framing, Probability Distortions, and Insurance Decisions

Journal of Risk and Uncertainty

Published By: Springer

Journal of Risk and Uncertainty

https://www. jstor .org/stable/41760693

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Abstract

A series of studies examines whether certain biases in probability assessments and perceptions of loss, previously found in experimental studies, bear upon consumers' decisions about insurance. Framing manipulations pb the consumers studied here to make hypothetical insurance-buy choices that violate basic laws of probability and value. Subjects exhibit distortions in their perception of risk and framing effects in evaluating premiums and benefits. Illustrations from insurance markets suggest that the same effects occur when consumers make actual insurance purchases.

Journal Information

The Journal of Risk and Doubtfulness features both theoretical and empirical papers that analyze risk-bearing behavior and decision-making under uncertainty. The journal serves equally an outlet for important, relevant research in decision analysis, economic science, and psychology. Amongst the topics covered in the journal are decision theory and the economics of doubtfulness, psychological models of selection under uncertainty, gamble and public policy, experimental investigations of behavior under uncertainty, and empirical studies of real-world, adventure-taking behavior. Manufactures begin with an introductory discussion explaining the nature of the research and the interpretation and implications of the findings at a level that is attainable to researchers in other disciplines.

Publisher Information

Springer is 1 of the leading international scientific publishing companies, publishing over 1,200 journals and more than 3,000 new books annually, roofing a wide range of subjects including biomedicine and the life sciences, clinical medicine, physics, engineering, mathematics, computer sciences, and economics.

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Source: https://www.jstor.org/stable/41760693

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