We consider a population of individuals who differ in two dimensions, their risk type (expected loss) and their risk aversion, and solve for the profit-maximising menu of contracts that a monopolistic insurer puts out on the market. Our findings are threefold. First, it is never optimal to fully...

In this paper, I propose a new way of characterising the consumer's preferences. It is based on the Hessian of the indirect utility function, after this matrix has been purified form its cardinality by means of a procedure suggested by Allais (1943). The properties of this matrix are...

In this paper we apply to multiplicative lotteries the idea of preference for "harm disaggregation" that was used for additive lotteries in order to interpret the signs of successive derivatives of a utility function. In this way, we can explain in general terms why the values of the...