Introduction: Insurance and its Economic Role -- Risk: Measurement, Perception, and Management.- Insurance Demand I: Decisions under Risk without Diversification Possibilities.- Insurance Demand II: Decisions under Risk with Diversification Possibilities.- The Insurance Company and its Insurance...

This contribution starts out by noting a conflict of interest between consumers and insurers. Consumers face positive correlation in their assets (health, wealth, wisdom, i.e. skills), causing them to demand a great deal of insurance coverage. Insurers on the other hand eschew positively...

This contribution starts out by noting a conflict of interest between consumers and insurers. Consumers face positive correlation in their assets (health, wealth, wisdom, i.e. skills), causing them to demand a great deal of insurance coverage. Insurers on the other hand eschew positively...