Optimal contracts have widely been studied in the literature, yet the bargaining for optimal prices has remained relatively unexplored. Therefore the key objective of this paper is to analyze the price of reinsurance contracts. We use a novel way to model the bargaining powers of the insurer and...

People often consume non-durable goods in a way that seems inconsistent with preferences for smoothing consumption over time. We suggest that such patterns of consumption can be better explained if one takes into account the future utility flows generated by memorable consumption goods,such as a...

We explore the set of preferences defined over temporal lotteries in an infinite horizon setting. We provide utility representations for all preferences that are both recursive and monotone. Our results indicate that the class of monotone recursive preferences includes Uzawa and risk-sensitive...

This paper uses the notion of augmented utility to summarize models of utility maximization (MUM). The models covered include non-separable utility maximization and common behavioral models of discounting. Moreover, the paper provides as novel special cases necessary and sufficient conditions...