This paper tests some existing theories developed over the past 25 years on corporate demand for insurance. Using a … standard property insurance and for catastrophe coverage (here, terrorism). We find that larger companies are more likely to … have some catastrophe coverage. Corporate demand for catastrophe insurance is found to be more price inelastic than …

insurance markets, where risk perceptions are endogenous. …Affective decision-making (ADM) is a refutable and predictive theory of individual choice under risk and uncertainty …

This paper proposes a historically-grounded mechanism-design model of corporate finance, with two-side risk aversion … capital structure shares optimally the non-diversifiable risk associated with costly and risky ventures. Furthermore, it … uniquely sustains the optimal risk allocation if agents' personal wealth is contractible at a higher enforcement cost than the …

. As an example, we present applications of affective decision-making in insurance markets, where the risk perceptions of …Affective decision-making is a strategic model of choice under risk and uncertainty where we posit two cognitive …

. As an example, we present applications of affective decision-making in insurance markets, where the risk perceptions of …Affective decision-making is a strategic model of choice under risk and uncertainty where we posit two cognitive …

We provide a characterization of an optimal insurance contract (coverage schedule and audit policy) when the monitoring … procedure is random. When the policyholder exhibits constant absolute risk aversion, the optimal contract involves a positive …

We provide a characterization of an optimal insurance contract (coverage schedule and audit policy) when the monitoring … procedure is random. When the policyholder exhibits constant absolute risk aversion, the optimal contract involves a positive … infinitely large. Inder decreasing absolute risk aversion, providing a positive indemnity payment for small claims with a non …