Do bad risks know it? Experimental evidence on optimism and adverse selection
Marta Coelho and
David de Meza
LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library
Abstract:
Subjects who overestimate their performance in experimental tasks unrelated to travel are less willing to insure against failing in the task and also less inclined to buy travel insurance. This suggests intrinsic optimism influences insurance demand and diminishes adverse selection
Keywords: ISI; optimism; forecast error; selection effects; insurance (search for similar items in EconPapers)
JEL-codes: C91 D60 D81 D82 D83 J24 (search for similar items in EconPapers)
Date: 2012-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)
Published in Economics Letters, February, 2012, 114(2), pp. 168-171. ISSN: 0165-1765
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http://eprints.lse.ac.uk/39074/ Open access version. (application/pdf)
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Journal Article: Do bad risks know it? Experimental evidence on optimism and adverse selection (2012) 
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:39074
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