This paper studies informal insurance across networks of individuals. Two characteristics are fundamental to the model developed here: First, informal insurance is a bilateral activity, and rarely involves explicit arrangements across several people. Second, insurance is a social activity, and...

We investigate risk-sharing without commitment by designing an experiment to match a simple model of voluntary insurance between two agents when aggregate income is constant. Participants are matched in pairs. Each period, they receive their income with or without a random component h that one...