Some consumption goods, such as housing, involve long-term commitment and their level of consumption can only be altered with substantial transaction costs. Even though the commitment effect on risk preferences, portfolio choice, and asset prices has been studied, little research has been...

In this paper, we propose a unified framework to simultaneously examine an insurer's mortality immunization strategy and individuals' insurance demand. On the supply side, an insurer chooses an optimal product mix of whole life insurance and deferred annuity by minimising the Conditional...