eprintid: 50726
rev_number: 6
eprint_status: archive
userid: 1482
importid: 105
dir: disk0/00/05/07/26
datestamp: 2025-04-04 07:44:50
lastmod: 2025-04-04 07:44:50
status_changed: 2025-04-04 07:44:50
type: book_section
metadata_visibility: show
creators_name: Courbage, Christophe
creators_name: Peter, Richard
creators_name: Rey-Fournier, Béatrice
creators_name: Treich, Nicolas
creators_idrefppn: 090395832
creators_idrefppn: 223701637
creators_idrefppn: 176599940
creators_halaffid: 1002422
title: Prevention and Precaution
ispublished: pub
subjects: subjects_ECO
abstract: 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.
date: 2025-03-02
date_type: published
publisher: Springer Cham
id_number: 10.1007/978-3-031-69674-9_2
book_subtitle: Volume II
official_url: http://tse-fr.eu/pub/130475
faculty: tse
divisions: tse
language: en
has_fulltext: FALSE
doi: 10.1007/978-3-031-69674-9_2
view_date_year: 2025
full_text_status: none
publication: Handbook of Insurance
place_of_pub: Cham
isbn: 978-3-031-69673-2
book_title: Handbook of Insurance
editors_name: Dionne, Georges
editors_idrefppn: 029285003
oai_identifier: oai:tse-fr.eu:130475
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oai_lastmod: 2025-03-31T09:37:04Z
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site: ut1
citation:   Courbage, ChristopheIdRef <https://www.idref.fr/090395832>, Peter, Richard, Rey-Fournier, BéatriceIdRef <https://www.idref.fr/223701637> and Treich, NicolasIdRef <https://www.idref.fr/176599940>  (2025) Prevention and Precaution.   In: Handbook of Insurance: Volume II Dionne, GeorgesIdRef <https://www.idref.fr/029285003> (ed.)  Springer Cham.    Cham  ISBN 978-3-031-69673-2