An expected utility based cost-benefit analysis is in general fragile to its distributional assumptions. We derive … necessary and sufficient conditions on the utility function of the expected utility model to avoid this. The conditions ensure … that expected (marginal) utility remains finite also under heavy-tailed distributional assumptions. Our results are context …

This paper analyzes optimal risk sharing among agents that are endowed with either expected utility preferences or with … dual utility preferences. We find that Pareto optimal risk redistributions and the competitive equilibria can be obtained … via bargaining with a hypothetical representative agent of expected utility maximizers and a hypothetical representative …

transaction costs compared to (re)insurance products. Insurance coverage usually incurs costs of acquisition, monitoring and loss … tools in a standard insurance demand theory environment. We concentrate on the problem of basis risk versus transaction cost …

insurance product designed to compensate low-income Indian farmers in the event of insufficient rainfall during the primary … purchase the insurance, even though they overwhelmingly cite rainfall variability as their most significant source of risk. We … then conduct a series of randomized field experiments to test theories of why product adoption is so low. Insurance …

uniform. We analyze how climate risks could be reduced via an insurance scheme at the global scale across regions and quantify …

decisions. This chapter explores how individuals make decisions to buy different types of insurance, even when faced with … predicable outcomes involving the frequency and severity of the loss. That is, individuals appear to buy insurance only when the …

-liability insurance industry …

defining a meaningful role for insurance in managing business interruption (BI) and other risks from future pandemics. The … insurance industry will be part of that solution set, whether through the continued development of ad hoc state …-by-state initiatives, a private-public partnership in which the insurance industry commits its servicing capabilities, or a private …