This study examines the business community of Charleston, South Carolina following Hurricane Hugo. The objectives of this study are (1) to determine if, after experiencing an actual catastrophe, a significant number of firms either purchased or increased Business Interruption and/or Extra...

Kahneman and Tversky proved that the preference of regular insurance over probabilistic insurance by expected utility maximizers was inconsistent with the risk-aversion hypothesis given the intuitive riskiness of the probabilistic insurance game. This note considers the idea of costly...