Prudence and prevention: an economic laboratory experiment

摘要: ABSTRACTIn an economic laboratory experiment, we study the relationship between prudence and prevention in general decision situations. Previous theoretical research on this posits a negative impact of optimal level prevention. Overall, find both risk-averse prudent behaviour among our subjects. Moreover, subjects chose significantly less than nonprudent subjects, confirming results one-period models literature. Our findings might have implications for health policy if – rather irrational behaviour, as previously assumed is responsible low levels preventive effort.