Anwar, Sajid; Zheng, Mingli - In: Insurance: Mathematics and Economics 50 (2012) 1, pp. 79-84
Within the context of a competitive insurance market, this paper examines the impact of ambiguity on the behavior of buyers and sellers. Ambiguity is described through a probability measure on an extended state space that includes extra ambiguous states. It is shown that if insurers face the...