RT Book, Section
SR 00
ID 10.1007/978-3-031-69674-9_2
A1 Courbage, Christophe
A1 Peter, Richard
A1 Rey-Fournier, Béatrice
A1 Treich, Nicolas
T1 Prevention and Precaution
YR 2025
FD 2025-03-02
AB 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.
A2 Dionne, Georges
T2 Handbook of Insurance
PB Springer Cham
PP Cham
SN 978-3-031-69673-2
AV Published
LK https://publications.ut-capitole.fr/id/eprint/50726/
UL http://tse-fr.eu/pub/130475