We consider the well-known model proposed by Milgrom and Weber in 1982, where players are risk neutral, their valuations are neither private nor common, they depend on privately observed signals and a common, unobservable, random variable S (possibly, multidimensional). We prove that if bidders...

This paper considers optimal insurance schemes in a principal-agent multi-dimensional environment in which two types of risk averse agents differ in both risk and attitude to risk. Risk corresponds to any pair of distribution functions (not necessarily ordered by any of the usual dominance...