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Durham University

Research & business

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Publication details for Dr Timo Heinrich

Heinrich, T, Seifert, M & Then, F (2019). Near-losses in insurance markets: An experiment. Economics Letters

Author(s) from Durham

Abstract

Several studies report changes in risk attitudes following losses that have been nearly averted. We disentangle strategic and non-strategic reactions to such near-loss events experimentally. We ob-serve that near-losses affect the demand for insurance under strategic uncertainty: the bids and asks for insurances increase in a call market after subjects experience near-losses, while individu-al evaluations of insurances are unaffected.