| IT is better to overinsure
than under-insure if you remain uncertain.
Still, a sizable proportion of subjects (almost 40 percent of males and 30 percent of females), engage in excess effort and do not overinsure
. Hence, whether the regulator should respond to the endowment
individuals who suffer losses, (161) it would be especially
The first group saw the Soviet Union operating in an environment in which it had real enemies and "a compulsion to overinsure
against potential threats." (31) Soviet leaders inherited traditional Russian insecurities, derived from the lack of geographic barriers to invasions and a history of many such invasions, married to "a politically xenophobic Communist ideology that interpreted the external world as implacable to the Socialist state." (32) In this conception, the Soviets were seen as (over)reactive to the influences of their environment and the behavior of external actors.
(222) In other instances, individuals may irrationally overestimate risk and so overinsure
. (223) Both of these outcomes are socially undesirable.
. This incentive, in turn, increases the likelihood that
As the creditors moved in, Brocket decided to overinsure
four of the cars and stage their theft.
insurance but try not to overinsure
because this may
A major puzzle in insurance economics is the fact that people underinsure low-probability events with high losses and overinsure
This asymmetry in information means that premiums for high-risk people are too low and premiums for low-risk people are too high, with the result that high-risk people overinsure
and many low-risk people drop out of--or never get into--the market.
promisee, (3) overinsure
the promisee, and (4) expose the promisor to