that different risk-groups prefer different types of contracts, and that only the sequential contracts, which are …

two periods can be decided either sequentially or simultaneously. We show that only a situation where all risk types …

that different risk-groups prefer different types of contracts, and that only the sequential contracts, which are …

We study risk-shifting behavior in a laboratory experiment, a setup that overcomes methodological hurdles faced by … empiricists in the past. The participants are high-level managers. We observe risk shifting in a simple setup, but less in a setup … with a continuation value. Reputation effects also reduce risk shifting. When combined, a continuation value and reputation …

may destabilize insurance arrangements among the larger group. We therefore consider self-enforcing risk … must itself employ some self-enforcing risk-sharing agreement. We observe that the stability of subgroups is inimical to …) bounded size, a result in sharp contrast to the individual-deviation problem, and that the degree of risk-sharing in a …

We analyze efficient risk-sharing arrangements when the value from deviating is determined endogenously by another risk … sharing arrangement. Coalitions form to insure against idiosyncratic income risk. Self-enforcing contracts for both the … facilitates the initial formation of coalitions, the extent of risk sharing in successfully formed coalitions is declining in the …

only costs of risk selection, but can also play an important role in loss-prevention. -- externalities ; insurance monopoly …