Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry the covariance of income and loan repayments may explain higher household borrowings than in the case without default option. Under ex post information asymmetry and positive...

This study aims to identify factors shaping attitude toward counterfeit products and their relative influence on attitude formation. This involves 200 potential and actual consumers of counterfeit products in an explanatory research. Antecedents of attitude toward counterfeit purchases extracted...

I revisit the question of which motive underlies insurance demand. I draw on the literature of state-dependent utility and on the literature of imperfectly divisible consumption to argue that the general purpose of insurance is not a risk transfer, but meeting a conditional need. In this way,...