In this experimental study, the analysis on two levels of substitution between insurance and self-insurance shows that a higher unit price results in a quantity-based substitution and a between-tools substitution while the only effect of a higher fixed cost is to reduce the insurance market. The optimality of the coverage demands associated with the equalization of marginal returns is not achieved. Instead, individuals chose a stable global amount of coverage. These behavioral insights have a potential impact on public policies related to insurance and self-insurance.

Voir le document

Centre interuniversitaire de recherche en analyse des organisations
1130 rue Sherbrooke Ouest, suite 1400
Montréal, Québec (Canada) H3A 2M8
(514) 985-4000
(514) 985-4039

© 2019 CIRANO. Tous droits réservés.

Partenaire de :

Website Security Test