This article describes the anatomy of health insurance. It begins by considering the optimal design of health insurance policies. Such policies must make tradeoffs appropriately between risk sharing on the one hand and agency problems such as moral hazard (the incentive of people to seek more...

We analyze the risk level chosen by agents that have private information regarding their quality. We show that even risk-neutral agents will choose risk strategically to enhance their reputation in the market, in a manner determined by the risk choices of other agents. Our model employs the...

This paper studies decision making by successful entrepreneurs and their agents. Since entrepreneurs decisions are often influenced by their agents' advice, understanding the behavior of both involved parties is crucial in analyzing observed decisions. To this end, a sample of successful...