On Insurance Contract Design For Low Probability Events
This paper extends the analysis of insurance contracts design to the case of "low probability events", when there is a probability mass on the "no accident-zero loss"-event. The optimality of the deductible clause is discussed both at the theoretical and empirical levels.
Volume (Year): 3 (2008)
Issue (Month): 2(4)_Summer2008 ()
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- repec:dau:papers:123456789/5463 is not listed on IDEAS
- Howard Kunreuther & Mark Pauly, 2004. "Neglecting Disaster: Why Don't People Insure Against Large Losses?," Journal of Risk and Uncertainty, Springer, vol. 28(1), pages 5-21, January.
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