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A Review of Insurance and Behavioral Economics: Improving Decisions in the Most Misunderstood Industry

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  • Peter Zweifel

Abstract

This book indeed goes a long way towards clearing up misconceptions about insurance both on the part of consumers and, even more importantly, insurance managers and regulators. However, in the eyes of this reviewer, the authors are too quick to jump on the bandwagon of 'Behavorial Economics' in their attempts to explain seeming anomalies in decisionmaking with repect to insurance. This said, the case studies included, statistics cited, and arguments proffered in this the volume make for interesting reading .

Suggested Citation

  • Peter Zweifel, 2014. "A Review of Insurance and Behavioral Economics: Improving Decisions in the Most Misunderstood Industry," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 21(1), pages 157-162, February.
    • Handle: RePEc:taf:ijecbs:v:21:y:2014:i:1:p:157-162
    DOI: 10.1080/13571516.2013.835959
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    References listed on IDEAS

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    1. Louis Eeckhoudt & Harris Schlesinger, 2006. "Putting Risk in Its Proper Place," American Economic Review, American Economic Association, vol. 96(1), pages 280-289, March.
    2. Jeffrey R. Brown & Amy Finkelstein, 2008. "The Interaction of Public and Private Insurance: Medicaid and the Long-Term Care Insurance Market," American Economic Review, American Economic Association, vol. 98(3), pages 1083-1102, June.
    3. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    4. Frech, H. III, 1994. "State-dependent utility and the tort system as insurance: Strict liability versus negligence," International Review of Law and Economics, Elsevier, vol. 14(3), pages 261-271, September.
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