We analyze insurance demand experiments conducted in two different settings: in-person at a university laboratory and online using Amazon's Mechanical Turk crowdworking platform ("MTurk"). Subject demographics differ significantly across the samples, but average insurance demand is similar....

Can measured risk attitudes and associated structural models predict insurance demand? In an experiment (n = 1,730), we elicit measures of utility curvature, probability weighting, loss aversion, and preference for certainty and use them to parameterize seventeen common structural models (e.g.,...

Can measured risk attitudes and associated structural models predict insurance demand? In an experiment (n = 1,730), we elicit measures of utility curvature, probability weighting, loss aversion, and preference for certainty and use them to parameterize seventeen common structural models (e.g.,...

Probability weighting is often used to explain insurance choices that conflict with expected utility (EU) preferences. We derive new theoretical results on the effects of probability weighting in the context of common insurance demand puzzles. We identify decreasing relative overweighting (DRO)...

Personal decisions about health hazards are the main cause of impaired health and premature death. People smoke and eat too much and exercise too little. The lack of preventive efforts is surprising given their proven effectiveness. Arrow's (1963) classical paper suggested that moral hazard...