Why do people often want to insure fully against uncertain situations even when the premium paid exceeds

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Why do people often want to insure fully against uncertain situations even when the premium paid exceeds the expected value of the loss being insured against?

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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Question Posted: Dec 22, 2015 02:19 AM

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Why do people often want to insure fully against uncertain situations even when the premium paid exceeds

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Risk averse people have declining marginal utility and this means that the pain of ...View the full answer

Microeconomics

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