The representative heuristic causes individuals to underweight prior probabilities and
overweight posterior probabilities. We examine the effect of the representative heuristic on …

We study return shipping insurance (RSI) policies prevalent on platforms such as JD. com
and Taobao. com. Retailers on those platforms can purchase and provide RSI for …

Theories of adverse selection and moral hazard predict the occurrence of the risk and the
coverage of the insurance should be positively correlated, whereas empirical researches …

Abstract De Meza and Webb (2001) indicated that individuals with a higher degree of risk
aversion would demand more insurance and invest in self-protection to reduce risk …

We examine the effect of prospect theory preferences on the demand for insurance to
determine whether such preferences can explain the choice of low deductibles observed in …

Some insurance markets are characterized by “advantageous selection”, that is, ex-post risk
and coverage are negatively correlated. We show that expectation-based loss aversion as in …

This article rests on establishing a unique standpoint that life insurance products (unlike
other financial assets) are purchased for protection, not as an investment for return. This …

Building on the model of insurance contracting introduced by Rothschild and Stiglitz (1976),
we assume there is uncertainty about the probability of incurring the loss, so that contracting …

This paper investigates the problem of asymmetric information in Taiwan's cancer insurance
market. Through the survey data, we find evidence of adverse selection existing in this …

This paper examines advantageous selection in automobile liability insurance from the
approach with hidden action, which argues that the individual's private information on his …