Purpose – Using a game-theoretic model of insurance markets, Powers and Shubik in 2001 derived a mathematical expression for the optimal number of reinsurers for a given number of primary insurers. Subsequently in 2005, Powers and Shubik showed analytically that, for large numbers of primary...

Purpose – Using a game‐theoretic model of insurance markets, Powers and Shubik in 2001 derived a mathematical expression for the optimal number of reinsurers for a given number of primary insurers. Subsequently in 2005, Powers and Shubik showed analytically that, for large numbers of primary...