A simplified financial-economic theory of the insurance firm under uncertainty is used to determine whether ambiguity about the expected claim frequency and/or the claim severity distribution for potential insured losses has any impact on the insurance rate. The model shows that the risk charge...

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Public opinion plays an important role in affecting policy outcomes. Additionally, risk plays an equally important role in decision making (economic and noneconomic). Yet, we know little about how individuals incorporate risk when forming attitudes on public policy issues. When asked to give an...