Cohen, Alma - In: Topics in Economic Analysis & Policy 6 (2006) 1, pp. 1055-1055
This paper analyzes the choice of deductible in insurance contracts that insure against a risk that, as is common … risk-bearing costs, the optimal contract is one that uses an aggregate deductible that applies to the aggregate losses … moral hazard costs than contracts that apply a per-loss deductible to each loss that occurs. I further show that each of …
