In the literature on optimal indemnity schedules, indemnities are usually restricted to be non-negative. Gollier (1987 … extends Gollier's findings by allowing for negative indemnity payments for a broader class of insurers' cost functions. …

In the literature on optimal indemnity schedules, indemnities are usually restricted to be non-negative. Gollier (1987 … extends Gollier’s findings by allowing for negative indemnity payments for a broader class of insurers’ cost functions. …

optimal insurance. It analyzes two basic forms of insurance contracts: A contract with a deductible and a contract imposing a … expected utility while deterring high risks from joining the contract that is designed for low risks. The deductible contract …

optimal insurance. It analyzes two basic forms of insurance contracts: A contract with a deductible and a contract imposing a … expected utility while deterring high risks from joining the contract that is designed for low risks. The deductible contract …

insured's probability measure, then the optimal indemnity schedule is a state-contingent deductible schedule, in which the … deductible depends on the state of the world only through the insurer's distortion function. In this paper, we examine the …