Aase, Knut K. - Institutt for foretaksøkonomi, Norges Handelshøyskole … - 2010
In his classical article in The American Economic Review, Arthur Raviv (1979) examines Pareto optimal insurance contracts when there are ex-post insurance costs c induced by the indemnity I for loss x. Raviv’s main result is that a necessary and sufficient condition for the Pareto optimal...