We study a dynamic Stackelberg differential game between a buyer and a seller of insurance policies in a spectrally …

Most risk mitigation activities involve technological uncertainty (TU) because their effectiveness depends on exogenous …. We provide a systematic assessment of the effects of TU on self-insurance and self-protection decisions. TU affects the … optimal level of risk mitigation via two channels: a preference channel and a technology channel. We identify conditions that …

fair price for low risk types provides full insurance against reclassification risk. We develop a model that includes … unpredictable (and unobservable) fluctuations in demand for life insurance as well as changes in risk type (observable) over … whose type turns out to be high risk but low demand renew more of their GR insurance than is efficient due to the attractive …

Decision-makers who usually face model/parameter risk may prefer to act prudently by identifying optimal contracts that … solved. Numerical experiments are run for various risk preference choices and it is found that for relatively large sample … the modeler puts on the tail risk when defining its objective function. These findings suggest that one should be very …

investigate how the structure of those networks can affect the capacity of regulators to assess the level of systemic risk. We … introduce a model to compute the individual and systemic probability of default in a system of banks connected in a generic … of systemic risk in terms of expected losses. We further quantify the effects of cyclicality, leverage, volatility and …

Empirical evidence suggests that ambiguity is prevalent in insurance pricing and underwriting, and that often insurers … findings, we consider a problem of demand for insurance indemnity schedules, where the insurer has ambiguous beliefs about the …

of a public pension system we assume risk-averse individuals who are uncertain about lifetime and disposable income and …

This paper tests some existing theories developed over the past 25 years on corporate demand for insurance. Using a … standard property insurance and for catastrophe coverage (here, terrorism). We find that larger companies are more likely to … have some catastrophe coverage. Corporate demand for catastrophe insurance is found to be more price inelastic than …

Existing studies estimate health insurance-induced increases in medical care expenditure by examining medical care … Survey, I quantify the moral hazard effect of insurance on medical care expenditure by estimating a dynamic model of within …-year medical care consumption that allows for insurance selection, endogenous health transitions, and individual uncertainty about …

insurance markets but to all markets where consumers decide on financial risk …We analyze a clear-cut example of choice under uncertainty, namely deductible choice in the Dutch health insurance … expected-utility theory, we find that healthier, wealthier and more risk-tolerant consumers choose higher levels of …