Article ID Journal Published Year Pages File Type
5060644 Economics Letters 2012 4 Pages PDF
Abstract
► Derives relation between optimism, insurance demand and loss probability. ► Devises and implements experiment to investigate the relationship. ► The higher the demand to insure against failing in the experimental task, the more realistic are performance forecasts. ► Subjects holding travel insurance have more realistic performance forecasts. ► Findings imply heterogeneous dispositional optimism offsets adverse selection.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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