@techreport{NBERw13748,
 title = "Why Don't People Insure Late Life Consumption: A Framing Explanation of the Under-Annuitization Puzzle",
 author = "Jeffrey R. Brown and Jeffrey R. Kling and Sendhil Mullainathan and Marian V. Wrobel",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "13748",
 year = "2008",
 month = "January",
 URL = "http://www.nber.org/papers/w13748",
 abstract = {Rational models of risk-averse consumers have difficulty explaining limited annuity demand. We posit that consumers evaluate annuity products using a narrow "investment frame" that focuses on risk and return, rather than a "consumption frame" that considers the consequences for lifelong consumption. Under an investment frame, annuities are quite unattractive, exhibiting high risk without high returns. Survey evidence supports this hypothesis: whereas 72 percent of respondents prefer a life annuity over a savings account when the choice is framed in terms of consumption, only 21 percent of respondents prefer it when the choice is framed in terms of investment features.},
}