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dc.contributor.authorBarseghyan, Levonen_US
dc.contributor.authorMolinari, Francescaen_US
dc.contributor.authorO'Donoghue, Teden_US
dc.contributor.authorTeitelbaum, Joshua C.en_US
dc.date.accessioned2012-09-26en_US
dc.date.accessioned2012-10-11T15:55:38Z-
dc.date.available2012-10-11T15:55:38Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/64845-
dc.description.abstractWe use data on insurance deductible choices to estimate a structural model of risky choice that incorporates standard risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions - characterized by substantial overweighting of small probabilities and only mild insensitivity to probability changes - play an important role in explaining the aversion to risk manifested in deductible choices. This finding is robust to allowing for observed and unobserved heterogeneity in preferences. We demonstrate that neither Kõszegi-Rabin loss aversion alone nor Gul disappointment aversion alone can explain our estimated probability distortions, signifying a key role for probability weighting.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo Working Paper: Behavioural Economics 3933en_US
dc.subject.jelD01en_US
dc.subject.jelD03en_US
dc.subject.jelD12en_US
dc.subject.jelD81en_US
dc.subject.jelG22en_US
dc.subject.ddc330en_US
dc.subject.stwRisikopräferenzen_US
dc.subject.stwVersicherungen_US
dc.subject.stwSelbstbeteiligungen_US
dc.subject.stwKonsumentenverhaltenen_US
dc.subject.stwSchätzungen_US
dc.subject.stwUSAen_US
dc.titleThe nature of risk preferences: Evidence from insurance choicesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn726461652en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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