Fagart, M.-C.; Picard, P. - Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor. - 1998
We provide a characterization of an optimal insurance contract (coverage schedule and audit policy) when the monitoring procedure is random. When the policyholder exhibits constant absolute risk aversion, the optimal contract involves a positive indemnity payment with a deductible when the...
