Self-protection under compound risk and ambiguity
We conduct an experiment designed to elicit risk management behavior and study its effects on disaster risk mitigation and investment in self-protection. Resident homeowners in Tuscaloosa and Mobile, Alabama are given choices against risk and ambiguity in both general and framed contexts, and in both monetary loss and gain domains. Demographics and data from homeowners' insurance policies are collected. This study seeks to understand factors influencing Alabama homeowners’ decisions to invest in windstorm loss mitigation. The results of this study could lead to significant policy implications on the design, selection, and promotion of specific windstorm resistant features.