This chapter surveys the economic literature on prevention and precaution. Prevention
refers as either a self-protection activity—ie a reduction in the probability of a loss—or a self …

In this article, we derive a set of simple conditions such that ambiguity aversion always
raises the demand for self‐insurance and the insurance coverage, but decreases the …

Numerous theoretical predictions such as precautionary saving or preventive behavior have
been derived for prudent decision makers. Further, prudence can be characterized as …

Risk aversion—but also the higher-order risk preferences of prudence and temperance—are
fundamental concepts in the study of economic decision making. We propose a method to …

We analyze the role of trust in the evaluation of a new food technology, namely
nanotechnology. A literature review in the social and economic sciences reveals that many …

For several decades, the orthodox economics approach to understanding choice under risk
has been to assume that each individual person maximizes some sort of personal utility …

Two models of ambiguity preferences that permit comparative statics analysis of greater
ambiguity aversion yield definite predictions concerning propensities for self-insurance and …

This work shows that, in a two-period framework, prudence has a positive effect on optimal
prevention. This conclusion is the opposite to that obtained in a one-period framework …

Technological progress has improved insurers' ability to monitor policyholders and has led
to usage‐based insurance (UBI) contracts that incorporate behavioral risk factors in pricing …

This chapter reviews the evolution in risk and insurance economics over the past 50 years,
first recalling the situation in 1973 and then presenting the developments and new …