000			02682cam a22003617 4500
001			w27319
003			NBER
005			20211020103704.0
006			m o d
007			cr cnu||||||||
008			210910s2020 mau fo 000 0 eng d
100	1		_aChaudhry, Shereen J.
245	1	0	_aBroad Bracketing for Low Probability Events / _cShereen J. Chaudhry, Michael Hand, Howard Kunreuther.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2020.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w27319
500			_aJune 2020.
520	3		_aIndividuals tend to underprepare for rare, catastrophic events because of biases in risk perception. A simple form of broad bracketing--presenting the cumulative probability of loss over a longer time horizon--has the potential to alleviate these barriers to risk perception and increase protective actions such as purchasing flood insurance. However, it is an open question whether broad bracketing effects last over time: There is evidence that descriptive probability information is ignored when decisions are made from "experience" (repeatedly and in the face of feedback), which describes many protective decisions. Across six incentive-compatible experiments with high stakes, we find that the broad bracketing effect does not disappear or change size when decisions are made from experience. We also advance our understanding of the mechanisms underlying broad bracketing, finding that, while cumulative probability size is a strong driver of the effect, this is dampened for larger brackets which lead people to be less sensitive to probability size.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aD01 - Microeconomic Behavior: Underlying Principles _2Journal of Economic Literature class.
690		7	_aD81 - Criteria for Decision-Making under Risk and Uncertainty _2Journal of Economic Literature class.
690		7	_aD91 - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making _2Journal of Economic Literature class.
700	1		_aHand, Michael.
700	1		_aKunreuther, Howard. _914669
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w27319.
856	4	0	_uhttps://www.nber.org/papers/w27319
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w27319
942			_2ddc _cW-PAPER
999			_c320805 _d279367