Black Swan Protection: an Experimental Investigation

Ozlem Ozdemir () and Andrea Morone
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Ozlem Ozdemir: Middle East Technical University, Department of Business Administration, Ankara, Turkey

No 2012/12, Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)

Abstract: This experimental study investigates insurance decisions in low-probability, high-loss risk situations. Results indicate that subjects consider the probability of loss (loss size) when they make buying decisions (paying decisions). Most individuals are risk averse with no specific threshold probability.

Keywords: Black swan; Risk; Insurance; Low probability; High loss; Experiment (search for similar items in EconPapers)
JEL-codes: C91 D81 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2012
New Economics Papers: this item is included in nep-evo, nep-exp, nep-ias and nep-upt
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Related works:
Working Paper: Black swan protection: an experimental investigation (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:jau:wpaper:2012/12

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