Quotation Kremslehner, Robert. 2012. Optimal Insurance Policies for Regret Averse Policyholders. Annual Meeting of the American Risk and Insurance Association, Minneapolis, Minnesota, Vereinigte Staaten/USA, 05.08.-08.08..


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Abstract

In this article, we derive optimal insurance policies for policyholders with regret theoretic preferences. Our results show that regret aversion decreases the demand for insurance when insurance is fairly priced, whereas for high insurance loadings the effect of regret aversion on insurance demand is ambiguous. Furthermore, we show that regret aversion can explain positive deductibles for fairly priced insurance in markets with symmetric information.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Optimal Insurance Policies for Regret Averse Policyholders
Event Annual Meeting of the American Risk and Insurance Association
Year 2012
Date 05.08.-08.08.
Country United States/USA
Location Minneapolis, Minnesota

Associations

People
Kremslehner, Robert (Former researcher)
Organization
Institute for Finance, Banking and Insurance IN (Details)
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