the fact that risk-averse insurance companies with uncertain costs face incentives to converge to a homogeneous quality … some metrics suggest very little quality differentiation in the U.S. auto insurance market. I explain this phenomenon using …, but also undermines the lower-end firm’s ability to charge the markup commanded by risk aversion. This can make …

Changes in risk perception have been used in various contexts to explain shorter-term developments in financial markets …." This approach holds that changes in risk perception affect actions undertaken in risky situations, and create a discrepancy … between the risk attitude implied by those actions and the a priori description of risk attitude as summarized by the Arrow …

lines of credit induce risk-averse consumers with sufficiently high discount rates to underinsure and hold lines of credit … instead as a buffer, even when they have access to full and fair insurance markets. Weighing the fixed upfront fees and higher …

underlying financial assets, and insurance risk, which arises from the policyholder's mortality. The authors show how efficient …The authors use the efficient hedging methodology for optimal pricing and hedging of equitylinked life insurance … <em>T</em>. Such contracts incorporate financial risk, which stems from the uncertainty about future prices of the …

that allows an aversion to the distinct risk associated with multiple models and dataparameter configurations. The author …

financial implications of such defaults for both households and banks. Results from a calibrated version of the model suggest …