This presentation is based on the AMA Innovation Lab projects for the Mind the Gap Workshop. This workshop was designed to allow for discussion of the pressing problem of the “yield gap” and the constraints to technology adoption that cause it.
In discussing the paradoxical violation of expected utility theory that now bears his name, Maurice Allais noted that people tend to “greatly value,” or overweight, outcomes that are certain. Digging deeper, the Principal Investigator draws on the more recent work of Andreoni and Sprenger on a Discontinuous Preference for Certainty and show that that impact of the rebate framing on willingness to pay for insurance is driven by individuals who exhibit a well deﬁned discontinuous preference for certainty.
This presentation took place at George Washington University, United States on November 6, 2014 describing how behavioral lab experiments have uncovered a wealth of evidence contradictory to standard economic workhorse theories.