Hardelin, Julien; Forges, Sabine Lemoyne de - In: The Geneva Risk and Insurance Review 37 (2012) 1, pp. 83-108
We consider an oligopoly market where firms offer insurance coverage against a risk characterised by aggregate uncertainty. Firms behave as if they were risk averse for a standard reason of costly external finance. The model consists in a two-stage game where firms choose their internal capital...