Brown, Murray; Wolfstetter, Elmar - In: RAND Journal of Economics 20 (1989) 3, pp. 291-307
Tripartite contracts between workers, a firm, and an insurance broker Pareto dominate the usual bilateral arrangements if coalitions are not feasible. They do this by allowing the broker to run surpluses over a reservation expected utility in some states and deficits in others. We show that...