Strict liabilities prevails at major accidents. According to the Polluter Pays Principle,l it is the liable party who pays for any damage. The accidents may be very large, however, compared to the assets of the liable plant owner. The liable party may, therefore, simply go bankrupt and leave the...

Purpose: This paper aims to examine if the market risk premiums of the Gulf Cooperation Council (GCC) countries are particularly higher on prescheduled US monetary policy announcement days. The findings shed light on the causality relationship from the state of the...

Purpose: In China, healthcare services have historically been expensive and difficult to access, with resources being unfairly distributed, often being centralized in large hospitals in major cities. In rural regions, hospitals often suffer from limited supplies, including human capital and...

This paper uses game theory to analyze mutual cooperatives. Whether or not there are risk premiums is assumed to distinguish mutual cooperatives from insurance companies. In mutual cooperatives, it is assumed that there are no risk premiums involved, which means that no individuals accept any...

In this paper, we analyze the model of agent-based coalition formation in markets. Our goal is to study the convergence of the coalition formation and optimize agents’ strategies. We show that the model has a unique steady state (equilibrium) and prove that all solutions converge to it in the...

Drought is a common occurrence in Nebraska and agriculture is the primary economic sector affected. Because of repeated and widespread severe drought impacts, more emphasis on drought risk management is warranted. This study develops an agricultural drought risk assessment model using...

We experimentally examine repeated partnerships with imperfect monitoring, where participants can unilaterally sever partnerships at any time. The experiment examines effects from changes in the value of an outside-the-partnership option. We find four main results where partners have access to...

The insignificance of currency risk in emerging markets is particularly puzzling, given a lack of hedging instruments and volatile currency movements in these markets. In this paper, we conjecture that this puzzle may be due to the comovement between exchange rates and the market factor in these...

Bayesian decision theory assumes that agents making choices assign subjective probabilities to outcomes, even in cases where information on probabilities is obviously absent. Here we show that agents that presume that they are equal risks can share risks mutually beneficially, even if the...