Alger, Ingela; Weibull, Jörgen - Economics Institute for Research (SIR), … - 2007
outperform actuarially fair insurance
programs.
Keywords: altruism, coerced altruism, family ties, insurance, moral hazard.
JEL … insurance
is conditioned on their (veri�ed) actions. Such moral-hazard phenomena are analyzed in
Helpman and La�ont (1975 … to moral hazard (an insurance policy cannot depend on the individual�s
e�ort). Since atomistic individuals do not …