We study a monopoly insurance model with endogenous information acquisition. Through a continuous effort choice …, consumers can determine the precision of a privately observed signal that is informative about their accident risk. The …

If the production of a risk-neutral monopolist is influenced by a random variable, then the expected profit is …

This study aims at characterizing the optimal regulation of risky activities when risk assessment is subjective as a … risk perceptions, which substantially affect the optimal intervention. To explore this issue, we construct a moral hazard … optimal fine level, which is in contrast to the effect of less risk-aversion. We then extend the analysis to the case where …