-period insurance policies with an upper limit and a deductible are the optimal incentive-compatible contracts in a competitive market …Insurance contracts are often complex and difficult to verify outside the insurance relation. We show that standard one … with repeated interaction. Optimal group insurance policies involve a joint upper limit but individual deductibles and …

) shows that this constraint might well bind: insured could get higher expected utility if insurance contracts would allow … optimal insurance contract he derives underestimates the relevance of the non-negativity constraint on indemnities. This paper …

We use data on households' deductible choices in auto and home insurance to estimate a structural model of risky choice … that incorporates standard risk aversion (concave utility over final wealth), loss aversion, and nonlinear probability …

hazard. In contrast to the case of risk aversion and moral hazard, the optimal insurance contract involves a joint deductible … transfer instruments. I analyze the interrelation between the structure of the optimal insurance contract and the firm …

International and national investors are often exposed to real wealth risks, stemming from volatile asset prices and …, price level and futures price and hence real wealth is stochastic. For a risk averse investor, optimal consumption and …

Mutual insurance companies and stock insurance companies are different forms of organized risk sharing: policyholders … necessary for a stock insurer to offer insurance at a fair premium, but not for a mutual. In the presence of an ownermanager …

We take a dynamic perspective on insurance markets under adverseselection and study a generalized Rothschildand … dynamic contracts. An unconditional dynamiccontract has insurance companies offeringcontracts where the terms of the contract … on individualpast performance (like in car insurances). Weinvestigate whether allowing insurance companies to offer …

Under certain conditions the optimal insurance policy will offer full coverage above a deductible, as Arrow and others … rarely ever optimal to combine two losses in one insurance contract prescribing only a single deductible for both losses if … have shown long time ago. Interestingly, the same design of insurance policies applies in case of a single loss and ex …

We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates standard … risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions … important role in explaining the aversion to risk manifested in deductible choices. This finding is robust to allowing for …