Summary |
The articles in this special issue study decision people make about insurance and liability. Understanding decision making may help explain why the insurance crisis resulted from the new interpretations of tort law, and what to do about it.
The articles cover three kinds of decision; decision consumers make about the insurance they buy; decision insurers make about the coverage they offer; and decision citizens make about the liability rules they prefer, which are reflected in legislation and regulation. For each of these three kinds of decision, normative theories, such as expected utility theory, can be used as guides for sensible decision, and as benchmarks against which actual decision are judged.
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