Keyword: risk
Covering Risk or Risky Behaviors? (7/27/2000)
The insurance solution to risky behaviors, such as smoking and underage driving, is to raise premium to discourage such behaviors and not to subsidize the treatment of such behaviors.
Crystal Ball (6/22/2006)
Better information on risky events may lead to market failure due to adverse selection.
Grade A Material (8/1/2002)
In the absence of perfect information, insurers charge premiums according to classes of risks rather than individual risks.
Heads I Win, Tails You Lose - Painless Risk Taking (8/31/1999)
The heated stock market for high-tech startups has spawned many newly rich through riskless stock options.
Insurance at Risk (11/10/2000)
Genetic test results on fatal diseases could lead to adverse selection of membership in life and health insurance if unfavorable results are concealed from insurers.
Risk Shifting (6/22/2006)
Defined-contribution pension plans increase labor mobility and facilitate the revival of old businesses in the face of massive industrial restructuring and longer life expectancy.
Statistical Victims (6/22/2006)
When identifiable victims are involved, people are willing to spend disproportionally more resources to save a few lives rather than spending the same amount to save a much larger number of statistical victims.
The Market Role of Information (7/7/2006)
Information or the lack of it may make or break a market.
Why Do Immigrants Own Inner-City Stores? (8/30/2001)
Inner city stores attract immigrant owners who are risk takers and have lower opportunity costs of alternative employment.