Liability, Insurance and the Incentive to Obtain Information about Risk

Vickie Bajtelsmit and Paul Thistle
Additional contact information
Vickie Bajtelsmit: Department of Finance and Real Estate, Colorado State University, Ft. Collins, CO 80523, U.S.A
Paul Thistle: Department of Finance, University of Nevada Las Vegas, Las Vegas, NV, 89154, U.S.A

The Geneva Risk and Insurance Review, 2015, vol. 40, issue 2, 193 pages

Abstract: We examine the incentives to obtain information about risk under strict liability and negligence rules when insurance is available. Information helps reduce the expected cost of accidents, but also exposes the potential injurer to classification risk. As a result, the social value of information may be negative. Under both strict liability and negligence, the private value of information may also be negative when insurance is available.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.palgrave-journals.com/grir/journal/v40/n2/pdf/grir201417a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/grir/journal/v40/n2/full/grir201417a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:genrir:v:40:y:2015:i:2:p:171-193

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10713

Access Statistics for this article

The Geneva Risk and Insurance Review is currently edited by Michael Hoy and Nicolas Treich

More articles in The Geneva Risk and Insurance Review from Palgrave Macmillan, International Association for the Study of Insurance Economics (The Geneva Association) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().