Economic Experiments, Hypothetical Surveys and Market Data Studies of Insurance Demand Against Low‐Probability/High‐Impact Risks: A Systematic Review of Designs, Theoretical Insights and Determinants of Demand

38 Pages Posted: 28 May 2020

See all articles by Peter John Robinson

Peter John Robinson

VU University Amsterdam - Institute for Environmental Studies (IVM)

Willem Jan Wouter Botzen

affiliation not provided to SSRN

Date Written: December 2019

Abstract

This paper provides a systematic review of the literature on 80 experimental, hypothetical survey and market data studies of insurance demand against low‐probability/high‐impact risks. The objective of the review is to extract lessons from these studies and to outline an agenda for future research. We contrast the results of experimental and survey studies to findings from market data. We focus on experimental design methods, insurance characteristics, as well as results about theories, heuristics, behavioural biases and explanatory variables. Lessons for policymakers are drawn which can facilitate disaster preparedness.

Keywords: Economic experiment, Hypothetical survey, Insurance demand, Low‐probability/high‐impact events, Market data

Suggested Citation

Robinson, Peter John and Botzen, Willem Jan Wouter, Economic Experiments, Hypothetical Surveys and Market Data Studies of Insurance Demand Against Low‐Probability/High‐Impact Risks: A Systematic Review of Designs, Theoretical Insights and Determinants of Demand (December 2019). Journal of Economic Surveys, Vol. 33, Issue 5, pp. 1493-1530, 2019, Available at SSRN: https://ssrn.com/abstract=3608932 or http://dx.doi.org/10.1111/joes.12332

Peter John Robinson (Contact Author)

VU University Amsterdam - Institute for Environmental Studies (IVM) ( email )

De Boelelaan 1087
Amsterdam, 1081HV
Netherlands

Willem Jan Wouter Botzen

affiliation not provided to SSRN

No Address Available

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