Risk Communication

The exchange of information about the probability and consequences of adverse events, and how these risks are perceived and managed.

Effect of a Decision Aid on Access to Total Knee Replacement for Black Patients With Osteoarthritis of the Knee: A Randomized Clinical Trial

Research Brief
Dec. 8, 2016

An educational video on the risks and benefits of total knee replacement increased the rate of surgery among black patients, in a clinical trial of an intervention that could reduce known racial disparities in treatment of osteoarthritis.

Insurance Decision-Making For Rare Events: The Role Of Emotions

Jan. 16, 2015

Howard Kunreuther, Mark Pauly

In a NBER working paper, Howard Kunreuther and Mark Pauly analyze an individual’s decision to purchase insurance when given information about “low-probability high-consequence” events such as a hurricane. The authors conducted a web-based multi-period insurance purchasing experiment. Participants were told the probability and resulting losses of a hurricane occurring and were informed that these were stable from period to period. The authors contrast the model of informed expected utility maximization with alternative behavioral models of choice as explanations for what they observe. The...