Week 7

Week 7 - Article Summary

Framing, Probability Distortions, and Insurance Decisions

Summary

The main aim of the article is to describe the certain biases which occur in the assessment of the profitability as well as in the loss case. The article also describes that how it affects the decision of the consumer when they are buying or making a decision to buy insurance. Major theories which are discussed in these articles are: Economic Theory, Microeconomics, Operational research and insurance decisions.

In the last decade the insurance industry has faced huge crisis in US as well as, in other countries. There are a ...