I’m not an expert on this, but my understanding is that one of the first papers on this subject was Johnson, Hershey, Meszaros, Kunreuther, “Framing, probability distortions, and insurance
decisions” the Journal of Risk and Uncertainty in 1993 in the in which showed that roughly that people were willing to pay less for insurance for an airplane crashing for any reason than for insurance for an airplane crashing due to a terrorist attack. That this isn’t just a form of the conjunction fallacy is shown by subsequent work that I don’t have a citation for where people were willing to pay more for the anti-terrorism insurance than insurance against plane crashes due to specific labeled technical problems (e.g. ice on wings, wiring problems).
Could you refer me to the relevant bibliography?
I’m not an expert on this, but my understanding is that one of the first papers on this subject was Johnson, Hershey, Meszaros, Kunreuther, “Framing, probability distortions, and insurance decisions” the Journal of Risk and Uncertainty in 1993 in the in which showed that roughly that people were willing to pay less for insurance for an airplane crashing for any reason than for insurance for an airplane crashing due to a terrorist attack. That this isn’t just a form of the conjunction fallacy is shown by subsequent work that I don’t have a citation for where people were willing to pay more for the anti-terrorism insurance than insurance against plane crashes due to specific labeled technical problems (e.g. ice on wings, wiring problems).