Morris A. Cohen • Howard Kunreuther Operations and Information Management Department, Wharton School, University of Pennsylvania, 3730 Walnut St., Philadelphia, PA 19104-6340, Phone: 215 898-6431 FAX: 215 898-3664, E-Mail: [email protected], Operations and Information Management Department, Wharton School University of Pennsylvania, 3730 Walnut St., Philadelphia, PA 19104-6340, Phone: 215...

Eric K. Clemons • Il-Horn Hann • Lorin M. Hitt Department of Operations and Information Management, The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104 Graduate School of Industrial Administration, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213 Department of Operations and Information Management, The Wharton School, University of Pennsylvania, Philadelph...

We study optimal investment in self-protection of insured individuals when they face interdependencies in the form of potential contamination from others. If individuals cannot coordinate their actions, then the positive externality of investing in self-protection implies that, in equilibrium, individuals underinvest in self-protection. Limiting insurance coverage through deductibles or selling...

Acknowledgments We are grateful to numerous individuals at our field site whose efforts made this project possible. We thank the DE Serguei Netessine, the associate editor and the anonymous reviewers whose comments and suggestions greatly improved this paper. provided valuable comments on earlier drafts of this paper. We also thank participants in the seminar in Carlson School of Management, CO...

Philadelphia attorney Francis Wharton was a key intellectual figure in linking the sciences of medicine and law. In 1860, he published a monograph on involuntary confessions, which represented the closing chapter of Wharton and Stillé's Treatise on Medical Jurisprudence. He had already published A Monograph on Mental Unsoundness in 1855, the first book of the Treatise in its first edition. Whar...

Vol. XLI (November 2004), 369–381 369 *Eric T. Bradlow is Associate Professor of Marketing and Statistics and Academic Director of the Wharton Small Business Development Center, The Wharton School, University of Pennsylvania (e-mail: ebradlow@ wharton.upenn.edu). Ye Hu is a visiting assistant professor, Krannert School of Management, Purdue University (e-mail: [email protected]). Teck-Hua Ho is W...

We examine optimal insurance purchase decisions of individuals that exhibit behavior consistent with Regret Theory. Our model incorporates a utility function that assigns a disutility to outcomes that are ex-post suboptimal, and predicts that individuals with regret-theoretical preferences adjust away from the extremes of full insurance and no insurance coverage. This prediction holds for both ...