Porat, Ariel; Tabbach, Avraham - In: American Law and Economics Review 13 (2011) 1, pp. 45-102
When people face risk of death, they overinvest in risk reduction: first, they discount their risk-reduction costs by the probability of death; second, they consider the consumption of their wealth as a benefit from risk reduction. From a social perspective, people's wealth remains after their...