with effort-determined probability. We show that if insurance against a negative shock is sufficiently incomplete, then … standard functional form restrictions ensure that individual objective functions are optimized by an effort and insurance … combination that is unique and satisfies first- and second-order conditions. Modeling insurance incompleteness in terms of costly …

driven by voters' spending on private insurance and increased willingness to take risks when spared from disaster. I … electoral returns, risk-aversion, and private insurance inquiries. These results are politically meaningful not least because US …

Using a model with constant relative risk-aversion preferences, endogenous labor supply and partial insurance against … cost associated with missing insurance markets. On the other hand, greater wage dispersion presents opportunities to raise …

This paper studies an optimal insurance problem with finitely many potential policyholders. A monopolistic, risk …-neutral insurer offers an insurance contract, and exponential utility maximizing individuals accept the offer or not. We allow for … heterogeneity in the preferences of the individuals, while the insurer cannot discriminate in the insurance premium. We show that it …

Demand for insurance can be driven by high risk aversion or high risk. We show how to separately identify risk … preferences and risk types using only choices from menus of insurance plans. Our revealed preference approach does not rely on … in insurance plans, offered separately to random cross-sections or offered as part of the same menu to one cross …

when risk is involved, even when full information is available. A simple normative analysis of decisions about insurance … consumers to choose insurance policies with higher deductibles. Possible computer expert systems to help consumers make …