You have two possessions you would like to insure against theft or damage: your new bicycle, which

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You have two possessions you would like to insure against theft or damage: your new bicycle, which cost you $800, and a painting you inherited, which has been appraised at $55,000. The painting is more valuable, but your bicycle must be kept outdoors and is in much greater danger of being stolen or damaged. You can afford to insure only one item. Which should you choose? Why?
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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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