CEAR/ MRIC Behavioral Insurance Workshop December 10th and 11th, 2018 Munich,

Scientific Program

Funding is provided by:

With additional support from: Verein zur Förderung der Versicherungswissenschaft in München e.V.

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General Information

Hotel Information: Organizers:

Hotel Carlton Astoria Andreas Richter, LMU Munich Jörg Schiller, University of Fürstenstraße 12 80333 München Phone: +49 (0)89 3839630 Contact: Leonardo Boutique Hotel Munich Joëlle Näger Amalienstraße 25 Phone: +49 (0)89 2180 - 2171 80333 München Fax: +49 (0)89 2180 - 992171 Phone: +49 (0)89 287870 E-Mail: [email protected]

Meeting Location: Lu Li Literaturhaus München Phone: +49 (0)89 2180 - 3929 Fax: +49 (0)89 2180 - 993929 Salvatorplatz 1 E-Mail: [email protected] 80333 München Phone: +49 (0)89 2919340

Dinner Location:

Hofbräukeller am Wiener Platz

Innere Wiener Strasse 19 81667 München Phone: +49 (0)89 4599250

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Sunday, December 9th

17:00 Christmas Market Visit (meet at Carlton Astoria and Leonardo Boutique)

18:30 Registration opens MRIC, Schackstr. 4, 3rd Floor, 80539 Munich

19:00 Welcome Reception MRIC, Schackstr. 4, 3rd Floor, 80539 Munich

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Monday, December 10th Literaturhaus, Salvatorplatz 1, 80333 München

Plenary (Saal)

8:30 Opening Andreas Richter, LMU Munich

8:45 Keynote Speech “Understanding dishonest behavior: Implications for insurance” Martin Kocher, Institute for Advanced Studies

Moderator: Andreas Richter, LMU Munich

09:45 Coffee Break (Foyer)

Session I: Choice Architecture (Saal) Session II: Investment (Forum) Moderator: Andreas Richter, LMU Munich Moderator: Markus Fels, University of Dortmund 10:00 When and how framing makes an- 10:00 Optimal endowment investing nuitization appealing: A model- Alexander Muermann, WU Vienna based analysis Kent Smetters, Wharton Stefan Schelling, Ulm University Discussant: Matthias Lang, LMU Munich Discussant: Claire Mouminoux, Université Lyon I

10:40 Default effects in car insurance: In- 10:40 Decomposing the disposition effect dividual heterogeneity in an online Dominik Fischer, LMU Munich field experiment Johannes Maier, LMU Munich Michael Jung, University of Markus Nöth, Discussant: Martin Boyer, HEC Montréal

Discussant: Ty Leverty, University of Wis- consin-Madison

11:20 Does the framing of patient cost- 11:20 Consumption and portfolio choice sharing incentives matter? The ef- under internal multiplicative habit fects of deductibles vs. no-claim re- formation funds Servaas van Bilsen, University of Amster- Arthur Hayen, Tilburg University dam Tobias Klein, Tilburg University A. Lans Bovenberg, Tilburg University Martin Salm, Tilburg University Roger Laeven, University of Amsterdam

Discussant: David Eckles, University of Discussant: Markus Fels, University of Georgia Dortmund

12:00 Lunch (Foyer)

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Session III: Credence Goods (Saal) Session IV: Health Insurance I (Forum) Moderator: Matthias Lang, LMU Munich Moderator: Peter Zweifel, University of Zurich 13:00 Diagnostic uncertainty and insur- 13:00 Long-term care insurance: ance in credence goods markets Knowledge barriers, risk percep- Loukas Balafoutas, University of Inns- tion and adverse selection bruck Martin Boyer, HEC Montréal Helena Fornwagner, University of Inns- Philippe De Donder, UQAM, Montréal bruck Claude Fluet, Université Laval Rudolf Kerschbamer, University of Inns- Marie-Louise Leroux, UQAM, Montréal bruck Pierre-Carl Michaud, HEC Montréal Matthias Sutter, Max Planck Institute Maryna Tverdostup, University of Inns- Discussant: Meghan Esson, University of bruck Georgia

Discussant: Peter Schwardmann, LMU Munich

13:40 Fee for advice: A remedy for biased 13:40 Advantageous selection and risk product recommendations? aversion: An econometric analysis Jörg Schiller, University of Hohenheim in the French health insurance Markus Weinert, University of Hohenheim market Morgane Plantier, Université Lyon I Discussant: Tim Jäger, University of Ham- Nathalie Havet, Université Lyon I burg Jean-Louis Rullière, Université Lyon I

Discussant: Peter Zweifel, University of Zurich

14:20 Coffee Break (Foyer)

Session V: Liquidity and Insurance (Saal) Session VI: Catastrophe Risk (Forum) Moderator: Johannes Jaspersen, LMU Munich Moderator: Lars Powell, University of Alabama 14:35 Liquidity constraints and the value 14:35 Behavioral motivations for self-in- of insurance surance under different disaster Keith Ericson, Boston University risk insurance schemes Justin Sydnor, University of Wisconsin- Jantsje Mol, Vrije Universiteit Amsterdam Madison W. J. Wouter Botzen, Utrecht University Julia Blasch, Wharton Discussant: Aidin Miri Lavasani, University of Hamburg Discussant: Sebastian Hinck, University of Hamburg

15:15 Time vs. state in insurance: Experi- 15:15 The influence of sellers on contract mental evidence from contract choice: Evidence from flood insur- farming in Kenya ance Lorenzo Casaburi, University of Zurich Ben Collier, Temple University Jack Willis, Columbia University Marc Ragin, University of Georgia

Discussant: Justin Sydnor, University of Discussant: Roxane Steinacker, LMU Mu- Wisconsin-Madison nich

15:55 Coffee Break (Foyer)

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Munich Re Plenary (Saal)

16:15 Keynote Speech “Modest-scale insurance as news management” Matthew Rabin, Harvard University

Moderator: Justin Sydnor, University of Wisconsin-Madison

18:30 Dinner (Hofbräukeller am Wiener Platz)

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Tuesday, December 11th Literaturhaus, Salvatorplatz 1, 80333 München

Session VII: Decision Theory (Saal) Session VIII: Non-Monetary Factors (Forum) Moderator: Ulrich Schmidt, Moderator: Mark Browne, St. John’s University 08:30 Learning about one's self 08:30 Peer effects in risk preferences: Ev- Yves Le Yaouanq, LMU Munich idence from Germany Peter Schwardmann, LMU Munich Mark Browne, St. John’s University Annette Hofmann, St. John’s University Discussant: Ben Collier, Temple University Andreas Richter, LMU Munich Sophie Roth, LMU Munich Petra Steinorth, University of Hamburg

Discussant: Orly Sade, Hebrew University of Jerusalem

09:10 The Role of probability weighting 09:10 Balancing the desire for privacy in optimal insurance demand: A against the desire to hedge risk double-edged sword Christian Biener, University of St. Gallen Johannes Jaspersen, LMU Munich Martin Eling, University of St. Gallen Richard Peter, University of Iowa Martin Lehmann, University of St. Gallen Marc Ragin, University of Georgia Discussant: Rob Hoyt, University of Geor- Discussant: Ulrich Schmidt, University of gia Kiel

09:50 Risk attitudes with state-dependent 09:50 The impact of motor vehicle simu- indivisibilities in consumption lator training on law enforcement Markus Fels, University of Dortmund officer driving behavior: Empirical evidence from accident frequency Discussant: Maximilian Voigt, Frankfurt School and severity Rob Hoyt, University of Georgia

Discussant: Sandra Zoller, LMU Munich

10:30 Coffee Break (Foyer)

Plenary (Saal)

10:45 Keynote Speech “The ultimate life insurance” Rakesh Sarin, UCLA Anderson

Moderator: Johannes Jaspersen, LMU Munich

11:45 Lunch (Foyer)

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Session IX: Higher Order Preferences (Saal) Session X: Health Insurance II (Forum) Moderator: Sebastian Ebert, Frankfurt School Moderator: Marc Ragin, University of Georgia 12:45 Experiencing risk: (Higher order) 12:45 Experiment on demand for health risk attitudes in experience vs. de- insurance, risk aversion, correla- scription based decisions tion aversion and preference for Christoph Becker, University of Heidel- health berg Doriane Mignon, Université Paris-Dau- Eyal Ert, Hebrew University Jerusalem phine Stefan Trautmann, University of Heidel- Léontine Goldzahl, University of Manches- berg ter Gijs van de Kuilen, Tilburg University David Crainich, IESEG Florence Jusot, IRDES Discussant: Johannes Maier, LMU Munich Discussant: Simeon Schudy, LMU Munich

13:25 Effects of risk attitudes on willing- 13:25 Medicaid expansion and the private ness to pay for precautionary build- market: A moral hazard story ing codes with insurance discounts Cameron Ellis, Temple University Sebastien Awondo, University of Alabama Meghan Esson, University of Georgia Kevin Egan, University of Toledo Joshua Frederick, University of Georgia Lars Powell, University of Alabama Discussant: Marc Ragin, University of Discussant: Aysil Emirmahmutoglu, Eras- Georgia mus School of Economics

14:05 Skewness expectations and portfo- 14:05 Health insurance design meets tax lio choice incentives for saving: Consumer re- Tilman Drerup, Bonn University sponses to complex contracts Matthias Wibral, Maastricht University Adam Leive, University of Virginia

Discussant: Sebastian Ebert, Frankfurt Discussant: Lu Li, LMU Munich School

14:45 Coffee Break (Foyer)

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Session XI: Life Insurance (Saal) Session XII: Intertemporal Models (Forum) Moderator: Ty Leverty, University of Wisconsin- Moderator: Glenn Harrison, Georgia State Univer- Madison sity 15:00 Surrender contagion in life insur- 15:00 Comparative risk aversion in two ance: Modeling and valuation periods: An application to self-in- Chunli Cheng, Sun Yat-Sen University surance and self-protection Christian Hilpert, Sun Yat-Sen University Tobias Huber, LMU Munich Aidin Miri Lavasani, University of Ham- burg Discussant: Christoph Heinzel, INRA Mick Schaefer, University of Hamburg

Discussant: Stefan Schelling, Ulm Univer- sity

15:40 An investigation of time prefer- 15:40 Robustness of experimental risk ences, life expectancy, and annuity and time preferences to inter- versus lump-sum choices: Can temporal asset integration smoking harm long-term saving de- AJ A. Bostian, University of Tampere cisions? Christoph Heinzel, INRA Abigail Hurwitz, Hebrew University of Je- rusalem Discussant: Feibai Zhu, Frankfurt School Orly Sade, Hebrew University of Jerusa- lem

Discussant: Cameron Ellis, Temple Univer- sity