relation: https://publications.ut-capitole.fr/id/eprint/50726/ title: Prevention and Precaution creator: Courbage, Christophe creator: Peter, Richard creator: Rey-Fournier, Béatrice creator: Treich, Nicolas subject: B- ECONOMIE ET FINANCE description: This chapter surveys the economic literature on prevention and precaution. Prevention refers to costly activities that mitigate risk. Prevention encompasses self-protection, an investment to reduce the probability of loss, and self-insurance, an investment to reduce the severity of loss. Precaution is defined as an activity to alleviate potential harm in response to limited present information, which may become more complete over time. We first present results on prevention, including the effect of risk preferences, wealth, and background risk. We also summarize recent behavioral research on prevention. Second, we discuss how the concept of precaution can be linked to the effect of arrival of information and present the literature on precautionary effort. publisher: Springer Cham contributor: Dionne, Georges date: 2025-03-02 type: Book Section type: NonPeerReviewed identifier: Courbage, ChristopheIdRef , Peter, Richard, Rey-Fournier, BéatriceIdRef and Treich, NicolasIdRef (2025) Prevention and Precaution. In: Handbook of Insurance: Volume II Dionne, GeorgesIdRef (ed.) Springer Cham. Cham ISBN 978-3-031-69673-2 relation: http://tse-fr.eu/pub/130475 relation: 10.1007/978-3-031-69674-9_2 identifier: 10.1007/978-3-031-69674-9_2 doi: 10.1007/978-3-031-69674-9_2 language: en