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, insurance aligns the risk in one's ftnancial endowment with the risk in …

defined insurance and non-insurance markets based on the initial loss size, we develop theory to show that insurers with buyer … our theory and find support. Monopolistic insurer-subjects in non-insurance markets increase loss sizes to establish …

Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry …

extended model with an infinite horizon, idiosyncratic risk and more realistic assumptions is used to demonstrate the general …

formation in choice under risk. Three novel experiments are presented that demonstrate the ability of the new theory to explain …In confidence theory, the decision maker relies on statistical regularities from the economic environment to adopt … confidence theory is an elaboration of Viscusi's prospective reference theory and accounts for the robust violations of expected …

We study the representative consumer's risk attitude and efficient risk-sharing rules in a single-period, single …-good economy in which consumers have homogeneous probabilistic beliefs but heterogeneous risk attitudes. We prove that if all … consumers have convex absolute risk tolerance, so must the representative consumer. We also identify a relationship between the …