Howard C. Kunreuther

Stephen J. Hoch

Perspectives from leaders in decision science at Wharton Organized in part through Wharton's Risk Management and Decision Processes Center, the book assembles leading researchers from Wharton's business faculty who demonstrate how to apply the latest approaches in decision-making from four perspectives: personal, managerial, negotiator, and consumer. Each chapter describes how decisions are actually made, presents the ideal scenario, and then provides practical suggestions for improvement. The subjects range from when consumers will choose variety, integrating intuition into decisions, and applying game theory and strategic decisions, to decision factors in negotiations and how choices are made about insurance and health care.

Wharton on Making Decisions

Erwann O. Michel-Kerjan

Innovative, long-term strategies for reducing vulnerability to large-scale natural disasters and for providing financial support for disaster victims. The United States and other nations are facing large-scale risks at an accelerating rhythm. In 2005, three major hurricanes—Katrina, Rita, and Wilma—made landfall along the U.S. Gulf Coast within a six-week period. The damage caused by these storms led to insurance reimbursements and federal disaster relief of more than $180 billion—a record sum. Today we are more vulnerable to catastrophic losses because of the increasing concentration of population and activities in high-risk coastal regions of the country. The question is not whether but when, and how frequently, future catastrophes will strike and the extent of damages they will cause. Who should pay the costs associated with catastrophic losses suffered by homeowners in hazard-prone areas? In At War with the Weather, Howard Kunreuther and Erwann Michel-Kerjan with their colleagues deliver a groundbreaking analysis of how we currently mitigate, insure against, and finance recovery from natural disasters in the United States. They offer innovative, long-term solutions for reducing losses and providing financial support for disaster victims that define a coherent strategy to assure sustainable recovery from future large-scale disasters. The amount of data collected and analyzed and innovations proposed make this the most comprehensive book written on these critical issues in the past thirty years.

Managing Large-Scale Risks in a New Era of Catastrophes

At War with the Weather

Mark V. Pauly

Stacey McMorrow

This book examines the behavior of individuals at risk and insurance industry policy makers involved in selling, buying and regulation.

Improving Decisions in the Most Misunderstood Industry

Insurance and Behavioral Economics

Eryl V. Ley

The first summer study at IIASA brought together a cross-section of individ uals from different disciplines and nationalities. All the participants have had an interest in the role of risk analysis given the institutional arrangements which guide decision making for new technologies. This book contains edited versions of the papers presented at the meeting as well as a transcript of the discussions which took place. It provides the ingredients for a broader framework fcr studying the problems associated with technology and society where risk is representative of a much wider set of concerns than simply the probability and consequences of a hazardous accident. The Bundesministerium fuer Forschung und Technologie has an interest in promoting risk and safety research because of these new developments in society over the past ten years. In particular, there has been a diminished confidence in experts' statements on risk and a realization that many of the events which are being examined are not subject to detailed scientific analysis. There has also been an increasing recognition that distinctions must be made between analysis of the risk associated with an event and people's values and preferences. Another important development is the concern by the public that they participate more fully in the decision process on these issues. These concerns were articulated in both the papers and the open discussions at the summer study.

Howard C. Kunreuther

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