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insurance

July 9, 2008 by Anonymous, 1 year 19 weeks ago
Comment id: 31052

I also find it puzzling that their would be a market for insurance given these findings. My best guess would have to be the percieved probabilites people form when considering insured events. Cognitive dissosance would explain why people living in flood prone areas would lower their perceived probabilities of a flood, in order to help them cope with a potentialy dangerous decision. Maybe?

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