Risk perceptions and rationality in measures of risk |
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| Authors: | Morteza Aalabaf-Sabaghi |
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| Affiliation: | aE.C.O. College of Insurance, Allameh Tabatabai University, No. 1, Malek-o-Shoara Bahar, Taleghani Avenue, Tehran 15717-53111, Iran |
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| Abstract: | Individuals may have biased perceptions of health and safety risks. We conjecture perceptions of mortality risk from various risk measures using parametric and non-parametric methods. We investigate how risk perceptions are measured and what rational explanations can be found for these measures with implication for risk and solvency. |
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| Keywords: | Perception Non-parametric tests Bayesian inference Rationality |
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