Expected utility theory holds that the demand for insurance is a demand for certainty, because under the conventional … specification of the theory, it appears as if buyers of insurance prefer certain losses to actuarially equivalent uncertain ones … paper attempts to reconcile expected utility theory with this empirical evidence by suggesting that insurance is demanded to …

Most insurance companies publish few data on the occurrence and detection of insurance fraud. This stands in contrast … uncertainty about fraud detection can be an effective strategy to deter ambiguity-averse agents from reporting false insurance …

We discuss the prevalence of pooling equilibria in a two-period model of an insurance market with asymmetric …

Most insurance companies publish few data on the occurrence and detection of insurance fraud. This stands in contrast … uncertainty about fraud detection can be an effective strategy to deter ambiguity-averse agents from reporting false insurance …

Individual moral hazard engendered by health insurance and monopolistic production are both typical phenomena of drug … insurance against the risk of drug expenses. In contrast, the social welfare criterion suggests that individuals should purchase … more insurance coverage than they choose to do in the market equilibrium. …

We analyse a 2-period competitive insurance market which is characterized by the simultaneous presence of standard … which patient consumers use high effort and buy a profit-making insurance contract with high coverage, whereas impatient …

in self-protection implies that, in equilibrium, individuals underinvest in self-protection. Limiting insurance coverage … through deductibles or selling 'at-fault' insurance can partially internalize this externality and thereby improve individual …

We examine insurance markets with two types of customers: those who regret suboptimal decisions and those who don.t. In … positive correlation between the amount of insurance coverage and risk type, as in the standard economic models of adverse … selection, but there also exist separating equilibria that predict a negative correlation between the amount of insurance …