demand for car insurance. - the effects of increases in labor income risk after 1979 seem to be more than offset by a more …Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the … propensity to insure against independent marketable risks. We apply these predictions to the specific case of labor income risk …

future demand. Possibly, consumers in our model prefer a flat rate to a measured tariff, even though this choice does not … minimize their expected billing amount - a behavior in line with ample empirical evidence. We solve for the profit … are strong variations in demand. Moreover, we analyze the optimal nonlinear tariff. This tariff has a large flat part when …

other products by an unusually low elasticity of demand with respect to product failure. While consumers in other markets … potential cures accumulated over time. Because no one was ever cured and consumers possessed a highly inelastic demand with … respect to product failures, demand was unrelenting. In short, patent medicines flourished not despite their dubious medicinal …

The purpose of this paper is to examine whether people treat all forms of uncertainty in the same way. Studies … investigating known-risk gambles and ambiguous gambles have systematically used the urn context. Little systematic research has … to a decision maker. The experiments reported in this paper examine the behavior of people when faced with a different …