Do bad risks know it? Experimental evidence on optimism and adverse selection
Coelho, M. & de Meza, D.
(2012).
Do bad risks know it? Experimental evidence on optimism and adverse selection.
Economics Letters,
114(2), 168-171.
https://doi.org/10.1016/j.econlet.2011.10.012
(2012).
Do bad risks know it? Experimental evidence on optimism and adverse selection.
Economics Letters,
114(2), 168-171.
https://doi.org/10.1016/j.econlet.2011.10.012
Subjects who overestimate their performance in experimental tasks unrelated to travel are less willing to insure against failing in the task and also less inclined to buy travel insurance. This suggests intrinsic optimism influences insurance demand and diminishes adverse selection