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
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Citations: View citations in EconPapers (5)

Published in Economics Letters, February, 2012, 114(2), pp. 168-171. ISSN: 0165-1765

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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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