Publication details for Dr Timo HeinrichHeinrich, T, Seifert, M & Then, F (2019). Near-losses in insurance markets: An experiment. Economics Letters
- Publication type: Journal Article
- ISSN/ISBN: 0165-1765
- DOI: 10.1016/j.econlet.2019.108781
- Further publication details on publisher web site
- Durham Research Online (DRO) - may include full text
Author(s) from Durham
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.