The affection effect in insurance decisions
Hsee and Kunreuther, Journal of Risk and Uncertainty 20(2), 2000, 141-159. Attachment to an item raised willingness to insure it at an unchanged payout and made people more likely to file a claim for a fixed payout after damage. Standard theories do not predict either pattern. Authors propose a consolation hypothesis: compensation is comfort for loss, not only money.
Hsee and Kunreuther, Journal of Risk and Uncertainty 20(2), 2000, 141-159. Attachment to an item raised willingness to insure it at an unchanged payout and made people more likely to file a claim for a fixed payout after damage. Standard theories do not predict either pattern. Authors propose a consolation hypothesis: compensation is comfort for loss, not only money.
Written from the abstract (RePEc), 2026-11-10.
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Hsee, C. K., & Kunreuther, H. C. (2000). The affection effect in insurance decisions. Journal of Risk and Uncertainty, 20(2), 141-159. doi:10.1023/A:1007876907268 https://doi.org/10.1023/A:1007876907268