What explanation does the book provide for the fact that people are loss-averse,but still accept the sure loss of paying insurance?
A)The vividness of the possibility of losing a big amount of money if they are uninsured leads people to overestimate their risk.
B)The special value pseudocertainty has.
C)Social norms that favor having insurance.
D)All of the above.

Question

Quizplus · Accepted Answer

The book explains that people's loss aversion, yet willingness to pay for insurance, can be attributed to a combination of factors: the vividness of potentially losing a large sum if uninsured, the value placed on the certainty that insurance provides, and social norms that encourage having insurance.

What Explanation Does the Book Provide for the Fact That