Risk management in everyday insurance decisions: Evidence from a process tracing study

Williamson, Janis and Ranyard, Rob and Cuthbert, Lisa (2000) Risk management in everyday insurance decisions: Evidence from a process tracing study. Risk, decision and policy, 5. pp. 19-38. ISSN 1357-5309

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Abstract

This study examined the applicability of Huber's (1997) model of risk management to a real world consumer insurance decision, namely whether to insure a recently purchased item against possible mechanical breakdown in the future. Huber argued that decision makers manage the risks of negative outcomes by applying one or more defusing operators. Respondents in this study asked for whatever information they felt necessary to decide whether to take out an extended warranty on two consumer products of differing values. We found support for most aspects of the model, particularly in relation to risk defusing operators, but also identified some respondents who could not easily be accommodated within it, i.e. those who perceived risk, but did not seem prepared to take any action. We also found evidence for recognition primed insurance decisions. The results are interpreted from a bounded rationality perspective.

Item Type: Article
Additional Information: This is an electronic version of an article published in Risk, decision and policy, and is copyright Taylor and Francis.
Subjects: B Philosophy. Psychology. Religion > BF Psychology
Divisions: School of Education and Psychology > Psychology
Depositing User: Scott Wilson
Date Deposited: 26 Nov 2013 12:51
Last Modified: 09 Jan 2014 15:05
URI: http://ubir.bolton.ac.uk/id/eprint/356

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