Intro Econ 8: Risk & Disaster

In this podcast, the hosts discuss the concept of risk and disaster. They explore risk-taking, professional gamblers, and their approach to assessing probabilities. They also delve into the role of insurance in mitigating financial risk, the evolution of insurance policies, and the exclusions and limitations of insurance. Additionally, they cover the reasons why people buy insurance and how it helps to mitigate the negative effects of risk. The chapter also explores the concept of insurance as a risk management tool and discusses moral hazard and adverse selection.