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..
BibTeX
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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Status of publication | Published |
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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)