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...

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...

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...

This paper studies the effect of increased risk aversion on self-insurance and self-protection in a two-period framework. Here risk management incentives and consumption smoothing incentives are traded off, and the monotonic relationship between self-insurance and risk aversion may no longer...