Under certain conditions the optimal insurance policy will offer full coverage above a deductible, as Arrow and others … have shown long time ago. Interestingly, the same design of insurance policies applies in case of a single loss and ex …-ante moral hazard. However, many insurance policies provide coverage against a variety of losses and the possibilities for the …

This paper empirically analyzes moral hazard in car insurance using a dynamic theory of an insuree's dynamic risk (ex …

other, but not to a larger degree than dictated by the social norm. We compare such informal family insurance with … actuarially fair formal insurance. We show that coerced family altruism reduces individual efforts in equilibrium. However … show that if family members are sufficiently altruistic to each other, then informal family insurance by way of coerced …

This paper constructs a dynamic model of health insurance to evaluate the short- and long run effects of policies that … prevent firms from conditioning wages on health conditions of their workers, and that prevent health insurance companies from … charging individuals with adverse health conditions higher insurance premia. Our study is motivated by recent US legislation …

The paper studies insurance with moral hazard in a system of contingent-claims markets. Insurance buyers are modelled … corresponding to effort incentives induced by insurance buyers? net trades. When there are many agents to share the insurance buyer …?s risk, Cournot equilibrium outcomes are close to being second-best. In contrast, if insurance buyers are price takers …

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 …

contracts to crowd out implicit insurance, even though the latter yields higher welfare.Integrating the principal-agent and …

In this paper, we ask under what conditions norms can enhance welfare by mitigating moral hazard in income insurance … social norms and internalized norms. We study how optimal insurance arrangements, the behavior of insured individuals, and …