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Evidence that waste aversion begets insurance aversion

de Meza, David, Fessner, Liza C. and Reyniers, Diane J. (2014) Evidence that waste aversion begets insurance aversion. Economics Letters, 126. pp. 75-77. ISSN 0165-1765

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Identification Number: 10.1016/j.econlet.2014.11.018

Abstract

Paying an insurance premium but not needing to claim is sometimes viewed as pouring money down the drain. Aversion to the perceived waste may lead to the rejection of fair insurance. Although policies paying rebates if no claim is made are not attractive to expected utility maximisers, this paper finds strong evidence they appeal to waste averters..

Item Type: Article
Official URL: http://www.journals.elsevier.com/economics-letters...
Additional Information: © 2014 Elsevier B.V.
Divisions: Management
Subjects: H Social Sciences > HD Industries. Land use. Labor
JEL classification: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty
G - Financial Economics > G2 - Financial Institutions and Services > G22 - Insurance; Insurance Companies
Sets: Departments > Management
Date Deposited: 08 Feb 2016 11:11
Last Modified: 20 Mar 2019 02:33
URI: http://eprints.lse.ac.uk/id/eprint/65272

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