contributions in insurance economics since that time. The review begins with the role of utility, risk, and risk aversion in the … beginning of modern economic analysis of insurance activity. This chapter reviews the main theoretical and empirical … insurance literature and then summarizes work on the demand for insurance, insurance and resource allocation, moral hazard, and …

high-load insurance against modest stakes risks. Mandatory information disclosure is a potentially attractive public policy … tool that might improve consumers' choices, but has not been widely tested in insurance settings. We conduct an incentive …-compatible insurance demand experiment in which we manipulate the information disclosed to subjects. We test whether any of the three most …

Insurance for natural hazards - earthquakes, hurricanes, or pandemics - is rarely comprehensively adopted without …. Efforts to close this insurance gap include the introduction of parametric (index) insurance products for various catastrophic … risks. We compare parametric to indemnity insurance in a simple model where the insurance company has superior information …

The actions that individuals take to minimize the impact of risk generally involve cost. Thus, the actions that provide … insurance often provide signals with regard to the individuals' underlying quality characteristics. Since the same action … affects risk exposure and signals quality, individual objectives are difficult to disentangle. In this paper we use an …

Risk management is now present in many economic sectors. This paper investigates the role of risk management in … financial intermediaries whose primary role in the economy is risk pooling and risk bearing. The risk pooling and risk bearing … functions performed by insurers are the primary determinants of the need for risk management. The main goal of this paper is to …

This article builds on Froot and Stein in developing a framework for analyzing the risk allocation, capital budgeting … with risk management and capital allocation; (ii) some, but not all, of the risks they face can be frictionlessly hedged in … of risk and capital structure of the firm. This approach allows us to integrate these features into: (i) the pricing of …

Index triggers have enabled the extension of insurance to disaster risks by providing a simple mechanism to determine … insurance payment. Disaster risks are notoriously difficult to insure against due to the covariant nature of risks, moral hazard … and adverse selection. Index based risk transfer minimizes these obstacles by not fully insuring the risk. However, such …

In the psychological and sociological framework of risk, we establish a static and dynamic equilibrium model for risk …-sharing institutional evolution. Particularly, through a comparative study of marine insurance development in China and Europe, we address a … wide set of research questions concerning why China and Europe relied on different social organizations for risk sharing. …

In this paper we study contract formation in a standard insurance model with one-sided ambiguity: the agent is … one - the most protable full insurance pooling contract - is a perfect sequential equilibrium. We believe this result to …

insurance markets. "The Economics of Uncertainty and Insurance" is relatively short (220 pages) and richly illustrated with 80 …