The impact of regret and worry on the threshold level of concern for flood insurance demand: Evidence from Dutch homeowners
It has been argued that individuals behave according to a threshold level of concern decision rule when considering protection against risk: if the perceived probability of the risk is below a threshold level, then the likelihood of the risk is treated as zero and protection is deemed unnecessary. L...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Cambridge University Press
2018-05-01
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| Series: | Judgment and Decision Making |
| Subjects: | |
| Online Access: | http://journal.sjdm.org/18/18201a/jdm18201a.pdf |
| _version_ | 1797707187662880768 |
|---|---|
| author | Peter John Robinson W. J. Wouter Botzen |
| author_facet | Peter John Robinson W. J. Wouter Botzen |
| author_sort | Peter John Robinson |
| collection | DOAJ |
| description | It has been argued
that individuals behave according to a threshold level of concern decision rule
when considering protection against risk: if the perceived probability of the
risk is below a threshold level, then the likelihood of the risk is treated as
zero and protection is deemed unnecessary. Little is known about the
determinants of this threshold nor about whether individual thresholds are
related to risk specific emotions like worry and regret. We study threshold
probabilities and factors that influence these in the context of flood
insurance decision making. Based on data collected from 1,041 Dutch homeowners,
we find that on average the threshold level of concern for flood insurance
demand is negatively related to the expected regret an individual might feel
about not purchasing flood insurance if a flood occurs, as well as to worry
about flooding. |
| first_indexed | 2024-03-12T06:03:39Z |
| format | Article |
| id | doaj.art-5011979327ec4cef8056b6b79678088c |
| institution | Directory Open Access Journal |
| issn | 1930-2975 |
| language | English |
| last_indexed | 2024-03-12T06:03:39Z |
| publishDate | 2018-05-01 |
| publisher | Cambridge University Press |
| record_format | Article |
| series | Judgment and Decision Making |
| spelling | doaj.art-5011979327ec4cef8056b6b79678088c2023-09-03T03:52:19ZengCambridge University PressJudgment and Decision Making1930-29752018-05-01133237245The impact of regret and worry on the threshold level of concern for flood insurance demand: Evidence from Dutch homeownersPeter John RobinsonW. J. Wouter BotzenIt has been argued that individuals behave according to a threshold level of concern decision rule when considering protection against risk: if the perceived probability of the risk is below a threshold level, then the likelihood of the risk is treated as zero and protection is deemed unnecessary. Little is known about the determinants of this threshold nor about whether individual thresholds are related to risk specific emotions like worry and regret. We study threshold probabilities and factors that influence these in the context of flood insurance decision making. Based on data collected from 1,041 Dutch homeowners, we find that on average the threshold level of concern for flood insurance demand is negatively related to the expected regret an individual might feel about not purchasing flood insurance if a flood occurs, as well as to worry about flooding.http://journal.sjdm.org/18/18201a/jdm18201a.pdfflood insurance demand threshold level of concern risk perceptions anticipated emotion anticipatory emotionNAKeywords |
| spellingShingle | Peter John Robinson W. J. Wouter Botzen The impact of regret and worry on the threshold level of concern for flood insurance demand: Evidence from Dutch homeowners Judgment and Decision Making flood insurance demand threshold level of concern risk perceptions anticipated emotion anticipatory emotionNAKeywords |
| title | The impact of regret
and worry on the threshold level of concern for flood insurance demand:
Evidence from Dutch homeowners |
| title_full | The impact of regret
and worry on the threshold level of concern for flood insurance demand:
Evidence from Dutch homeowners |
| title_fullStr | The impact of regret
and worry on the threshold level of concern for flood insurance demand:
Evidence from Dutch homeowners |
| title_full_unstemmed | The impact of regret
and worry on the threshold level of concern for flood insurance demand:
Evidence from Dutch homeowners |
| title_short | The impact of regret
and worry on the threshold level of concern for flood insurance demand:
Evidence from Dutch homeowners |
| title_sort | impact of regret and worry on the threshold level of concern for flood insurance demand evidence from dutch homeowners |
| topic | flood insurance demand threshold level of concern risk perceptions anticipated emotion anticipatory emotionNAKeywords |
| url | http://journal.sjdm.org/18/18201a/jdm18201a.pdf |
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