An Experimental Investigation of the Impact of Ambiguity on the Valuation of Self-Insurance and Self-Protection.

B-Tier
Journal: Journal of Risk and Uncertainty
Year: 1996
Volume: 13
Issue: 1
Pages: 53-71

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We build two experimental markets to examine individual valuations of risk reductions with two risk-management tools: self-insurance and self-protection. We find no positive evidence that the risk-reducing mechanisms constitute a "frame." Ambiguity in the probability on average affects valuation only weakly, and changes in the representation of ambiguity do not alter valuation. Finally, unlike the results obtained by Hogarth and Kunreuther for the case of market insurance, our findings do not provide a strong support for the "Anchoring and Adjustment" ambiguity model. Copyright 1996 by Kluwer Academic Publishers

Technical Details

RePEc Handle
repec:kap:jrisku:v:13:y:1996:i:1:p:53-71
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25