How do voters respond to heightened risk? Dominant theories expect accountability issues to surface or distributional conflict to intensify once threats become salient. Unsatisfactorily, these accounts rely on compound treatment effects of exposure not only to risk but also to direct losses or...

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