When risks are interdependent, loss-prevention activities of one agent influence the risks faced by others. The social return to an investment in loss-prevention is greater than the private return. From a perspective of social welfare, the market allocation is not optimal and leads to...

Der vorliegende Artikel analysiert die optimale Prämienpolitik eines Versicherers bei stochastischer Verteilung der Nachfragertypen auf Basis einer Preis-Absatz-Funktion. Dem Versicherer ist hier lediglich die Wahrscheinlichkeitsverteilung der individuellen Nachfragertypen bekannt und eine...

We study the relationship between risk managers' dark triad personality traits (Machiavellianism, narcissism, and psychopathy) and their selective hedging activities. Using a primary survey of 412 professional risk managers, we find that managers with dark personality traits are more likely to...

Common economic models of insurance theory assume that insurers play no role in modifying the loss potential. Individual loss prevention decisions tend to reduce risk and even often affect risk faced by others. Incorporating these important features into an insurance market, we argue that...

The present paper analyzes the demand for insurance when the insurer has incomplete information about types of potential customers. We assume that customers' risk preferences cannot be distinguished by the insurer. Therefore, the standard result in insurance economics that the insurer...

This article deals with the impact of intermediaries on insurance market transparency and performance. In a market exhibiting product differentiation and coexistence of perfectly and imperfectly informed consumers, competition among insurers leads to non-existence of a pure-strategy market...

Unternehmen stehen heute aufgrund ökonomischer Anreize verstärkt vor der Entscheidung, die bisher intern gelagerte Datenverarbeitung und Geschäftsprozesse auf einen externen Anbieter von Cloud-Computing-Dienstleistungen auszulagern. Diese neuartige Form des IT-Outsourcing verändert jedoch...

Unternehmen stehen heute aufgrund ökonomischer Anreize verstärkt vor der Entscheidung, die bisher intern gelagerte Datenverarbeitung und Geschäftsprozesse auf einen externen Anbieter von Cloud-Computing-Services auszulagern. Diese neuartige Form des IT-Outsourcings verändert jedoch die...

This paper studies insurance demand for individuals with limited financial literacy. We propose uncertainty about insurance payouts, resulting from contract complexity, as a novel channel that affects decision-making of financially illiterate individuals. Then, a trade-off between second-order...