Bounded Rationality, Climate Risks, and Insurance: Is There a Market for Natural Disasters?

References

1. 1. Abdellaoui Mohammed.

   2000. “Parameter-Free Elicitation of Utility and Probability Weighting Functions.” Management Science 46 (11): 1497–1512.

   OpenUrlCrossRefWeb of Science
2. 1. Arrow Kenneth J.

   1971. Essays in the Theory of Risk-Bearing. Chicago: Markham Publishing Company.
3. 1. Rosssella Bargiacchi

   . 2003. “Climate Change Scenarios and the Precautionary Principle.” In Risk and Uncertainty in Environmental and Resource Economics, ed. Wesseler Justus, Weikard Hans-Peter, Weaver Robert D. London: Edward Elgar Publishing.
4. 1. Bleichrodt Han,
   2. Pinto Jose L.,
   3. Wakker Peter P.

   2001. “Making Descriptive Use of Prospect Theory to Improve the Prescriptive Use of Expected Utility Theory.” Management Science 47 (11): 1498–1514.

   OpenUrlCrossRefWeb of Science
5. 1. Bliss Robert R.,
   2. Panigirtzoglou Nikolaos

   . 2004. “Option-Implied Risk Aversion Estimates.” Journal of Finance 59 (1): 407–46.

   OpenUrlCrossRefWeb of Science
6. 1. Booij Adam S.,
   2. van de Kuilen Gijs

   . 2006. “A Parameter-Free Analysis of the Utility of Money for the General Population under Prospect Theory.” CREED Working Paper, Faculty of Economics and Econometrics, University of Amsterdam.
7. 1. Botzen W. J. Wouter,
   2. van den Bergh Jeroen C. J. M.

   2008. “Insurance against Climate Change and Flooding in the Netherlands: Present, Future and Comparison with Other Countries.” Risk Analysis 28 (2): 413–26.

   OpenUrlCrossRefPubMedWeb of Science
8. 1. Bouwer Laurens M.,
   2. Vellinga Pier

   . 2005. “Some Rationales for Risk Sharing and Financing Adaptation.” Water Science and Technology 51 (5): 89–95.

   OpenUrlCrossRefPubMedWeb of Science
9. 1. Brookshire David S.,
   2. Thayer Mark A.,
   3. Tschirhart John,
   4. Schulze William D.

   1985. “A Test of the Expected Utility Model: Evidence from Earthquake Risks.” Journal of Political Economy 93 (2): 369–89.

   OpenUrlCrossRefWeb of Science
10. 1. Camerer Colin

    . 1998. “Bounded Rationality in Individual Decision Making.” Experimental Economics 1 (2): 163–83.

    OpenUrlCrossRef
11. 1. Cohen Michéle D.

    1995. “Risk Aversion in Concepts in Expected- and Non-Expected- Utility Models.” Geneva Papers on Risk and Insurance Theory 20 (1): 73–91.

    OpenUrlCrossRefWeb of Science
12. 1. Cubitt Robin P.,
    2. Starmer Chris,
    3. Sugden Robert

    . 2001. “Discovered Preferences and the Experimental Evidence of Violations of Expected Utility Theory.” Journal of Economic Methodology 8 (3): 385–414.

    OpenUrlCrossRef
13. 1. Dessai Suraje,
    2. Hulme Mike

    . 2007. “Assessing the Robustness of Adaptation Decisions to Climate Change Uncertainties: A Case Study on Water Resources Management in the East of England.” Global Environmental Change 17 (1): 59–72.

    OpenUrlCrossRefWeb of Science
14. 1. Diecidue Enrico,
    2. Wakker Peter P.

    2001. “On the Intuition of Rank-Dependent Utility.” Journal of Risk and Uncertainty 23 (3): 281–98.

    OpenUrlCrossRefWeb of Science
15. 1. Dienst Weg- en Waterbouw (DWW)

    . 2005. HIS Hoogwater Informatie Systeem voor Rampenbestrijding bij Overstromingen. Delft, The Netherlands: Rijkswaterstaat DWW.
16. 1. Donkers Bas,
    2. Melenberg Bertrand,
    3. van Soest Arthur

    . 2001. “Estimating Risk Attitudes Using Lotteries: A Large Sample Approach.” Journal of Risk and Uncertainty 22 (2): 165–95.

    OpenUrlCrossRefWeb of Science
17. 1. Etchart-Vincent Nathalie

    . 2004. “Is Probability Weighting Sensitive to the Magnitude of Consequences? An Experimental Investigation on Losses.” Journal of Risk and Uncertainty 28 (3): 217–35.

    OpenUrlCrossRefWeb of Science
18. 1. Freeman Paul K.,
    2. Kunreuther Howard

    . 2003. “Managing Environmental Risk through Insurance.” In The International Yearbook of Environmental and Resource Economics 2003/2004, ed. Folmer Henk, Tietenberg Tom. Northampton, UK: Edward Elgar Publishing.
19. 1. Goldstein William M.,
    2. Einhorn Hillel J.

    1987. “Expression Theory and the Preference Reversal Phenomenon.” Psychological Review 94 (2): 236–54.

    OpenUrlCrossRefWeb of Science
20. 1. Heal Geoffrey,
    2. Kriström Bengt

    . 2002. “Uncertainty and Climate Change.” Environmental and Resource Economics 22 (1–2): 3–39.

    OpenUrlCrossRefWeb of Science
21. 1. Intergovernmental Panel on Climate Change (IPCC)

    . 2007. Climate Change 2007: The Physical Science Basis. Contribution of Working Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change, ed. Solomon Susan, Qin Dahe, Manning Martin, Marquis Melinda, Averyt Kristen, Melinda M. B. Tignor, Miller Henry L., Chen Zhenlin. New York: Cambridge University Press.
22. 1. Johnson Eric J.,
    2. Gaechter Simon,
    3. Herrman Andreas

    . 2006. “Exploring the Nature of Loss Aversion.” Working Paper 2015. Bonn: Institute for the Study of Labor.
23. 1. Kaas Rob,
    2. Goovaerts Marc,
    3. Dhaene Jan,
    4. Denuit Michel

    . 2001. Modern Actuarial Risk Theory. Dordrecht: Kluwer Academic Publishers.
24. 1. Kabat Pavel,
    2. van Vierssen Wim,
    3. Veraart Jeroen,
    4. Vellinga Pier,
    5. Aerts Jeroen

    . 2005. “Climate Proofing the Netherlands.” Nature 438 (7066): 283–84.

    OpenUrlCrossRefPubMedWeb of Science
25. 1. Kahneman Daniel,
    2. Tversky Amos

    . 1979. “Prospect Theory: An Analysis of Decision under Risk.” Econometrica 47 (2): 263–91.

    OpenUrlCrossRefWeb of Science
26. 1. Kunreuther Howard,
    2. Rose Adam

    . 2004. The Economics of Natural Hazards. Northampton, UK: Edward Elgar Publishing.
27. 1. Lattimore Pamela K.,
    2. Baker Joanna R.,
    3. Dryden Witte A.

    1992. “The Influence of Probability on Risky Choice.” Journal of Economic Behavior and Organization 17 (3): 377–400.

    OpenUrlCrossRefWeb of Science
28. 1. Mason Charles,
    2. Shogren Jason,
    3. Settle Chad,
    4. List John

    . 2005. “Investigating Risky Choices over Losses Using Experimental Data.” Journal of Risk and Uncertainty 31 (2): 187–215.

    OpenUrlCrossRefWeb of Science
29. 1. Middelkoop Hans,
    2. Daamen Karlheinz,
    3. Gellens Daniel,
    4. Grabs Wolfgang,
    5. Kwadijk Jaap C. J.,
    6. Lang Herbert,
    7. Parmet Bart W. A. H.,
    8. Schädler Bruno,
    9. Schulla Jörg,
    10. Wilke Klaus

    . 2001. “Impact of Climate Change on Hydrological Regimes and Water Resources Management in the Rhine Basin.” Climatic Change 49 (1–2): 105–28.

    OpenUrlCrossRefGeoRefWeb of Science
30. 1. Pratt John W.

    1964. “Risk Aversion in the Small and in the Large.” Econometrica 32 (1/2): 122–36.

    OpenUrlCrossRefWeb of Science
31. 1. Prelec Drazen.

    1998. “The Probability Weighting Function.” Econometrica 66 (3): 497–527.

    OpenUrlCrossRefWeb of Science
32. 1. Quiggin John

    . 1982. “A Note on the Existence of a Competitive Optimum.” Economic Record 55 (161): 174–76.

    OpenUrl
33. 1. Quiggin John

    . 2005. “The Precautionary Principle in Environmental Policy and the Theory of Choice under Uncertainty.” Murry Darling Program Working Paper M05#3. Brisbane: University of Queensland.
34. 1. RIZA

    . 2003. Hoeveel Hoogwater Kan ons Land Binnenkomen via de Rijn bij Lobith, Nu en in de Toekomst. RIZA Report 2003.015. Lelystad, The Netherlands: Rijkswaterstaat RIZA.
35. 1. Rosenman Robert,
    2. Fort Rodney,
    3. Budd William

    . 1988. “Perceptions, Fear, and Economic Loss: An Application of Prospect Theory to Environmental Decision Making.” Policy Sciences 21 (4): 327–50.

    OpenUrlCrossRefWeb of Science
36. 1. Schmeidler David.

    1989. “Subjective Probability and Expected Utility without Additivity.” Econometrica 57 (3): 571–87.

    OpenUrlCrossRefWeb of Science
37. 1. Technical Advisory Committee for Flood Defense (TAW)

    . 2000. From Probability of Exceedance to Probability of Flooding: Towards a New Safety Approach. Technische Adviescommissie voor de Waterkeringen, Dienst Weg- en Waterbouwkunde. Delft, The Netherlands: Rijkswaterstaat.
38. 1. Tol Richard S. J.

    2001. “Estimates of the Damage Costs of Climate Change. Part 1: Benchmark Estimates.” Environmental and Resource Economics 21 (1): 47–73.

    OpenUrlCrossRef
39. 1. Tol Richard S. J.

    2005. “The Marginal Damage Costs of Carbon Dioxide Emissions: An Assessment of the Uncertainties.” Energy Policy 33 (16): 2064–74.

    OpenUrlCrossRefWeb of Science
40. 1. Tompkins Emma L.,
    2. Neil Adger W.

    2005. “Defining Response Capacity to Enhance Climate Change Policy.” Environmental Science and Policy 8 (6): 562–57.

    OpenUrlCrossRefWeb of Science
41. 1. Tversky Amos.

    1967. “Utility Theory and Additivity Analysis of Risky Choices.” Journal of Experimental Psychology 75 (1): 27–36.

    OpenUrlCrossRefPubMedWeb of Science
42. 1. Tversky Amos,
    2. Fox Craig R.

    1995. “Weighting Risk and Uncertainty.” Psychological Review 102 (2): 269–83.

    OpenUrlCrossRefWeb of Science
43. 1. Tversky Amos,
    2. Kahneman Daniel

    . 1981. “The Framing of Decisions and the Psychology of Choice.” Science 211 (4481): 453–58.

    OpenUrlAbstract/FREE Full Text
44. 1. Tversky Amos,
    2. Kahneman Daniel

    . 1992. “Advances in Prospect Theory: Cumulative Representation of Uncertainty.” Journal of Risk and Uncertainty 5 (4): 297–323.

    OpenUrlCrossRefWeb of Science
45. 1. van Schoubroeck Caroline

    . 1997. “Legislation and Practice Concerning Natural Disasters and Insurance in a Number of European Countries.” Geneva Papers on Risk and Insurance 83:238–67.

    OpenUrl
46. 1. Verbeek Koos

    . 2003. De Toestand van het Klimaat in Nederland 2003. De Bilt: Royal Dutch Meteorological Institute.
47. 1. Wakker Peter P.

    2001. “Testing and Characterizing Properties of Nonadditive Measures through Violations of the Sure-Thing Principle.” Econometrica 69 (4): 1039–59.

    OpenUrlCrossRefWeb of Science
48. 1. Wakker Peter P.

    2006. “Explaining the Characteristics of the Power (CRRA) Utility Family.” Working paper. Rotterdam: Econometric Institute, Erasmus University.
49. 1. Wakker Peter P.,
    2. Deneffe Daniel

    . 1996. “Eliciting von Neumann-Morgenstern Utilities When Probabilities Are Distorted or Unknown.” Management Science 42 (8): 1131–50.

    OpenUrlCrossRefWeb of Science
50. 1. Wakker Peter P.,
    2. Timmermans Daniëlle R. M.,
    3. Machielse Irma

    . 2007. “The Effects of Statistical Information on Risk- and Ambiguity- Attitudes, and on Rational Insurance Decisions.” Management Science 53 (11): 1770–84.

    OpenUrlCrossRefWeb of Science
51. 1. Weber Elke U.

    1994. “From Subjective Probabilities to Decision Weights: The Effect of Asymmetric Loss Functions on the Evaluation of Uncertain Outcomes and Events.” Psychological Bulletin 115 (2): 228–42.

    OpenUrlCrossRefWeb of Science
52. 1. Wouters Koen

    . 2005. Veiligheid Nederland in Kaart Globale Schadeberekening: Achtergronddocument. Delft, The Netherlands: Rijkswaterstaat WDD.
53. 1. Wu George,
    2. Gonzalez Richard

    . 1996. “Curvature of the Probability Weighting Function.” Management Science 42 (12): 1676–90.

    OpenUrlCrossRefWeb of Science