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income risk. To mitigate these frictions, insurers make costly investments into technologies such as auditing and enforcement …
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optimal decision problem of using self-governance for risk sharing or governance through enforcement provided by these … commitment problems prevent first-best risk sharing, but never optimal to provide incentives exclusively via this technology …
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decision problem of using self-governance for risk sharing or governance through enforcement provided by these institutions … prevent first-best risk sharing, but never optimal to provide incentives exclusively via this technology. Commitment problems …
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optimal decision problem of using self-governance for risk sharing or governance through enforcement provided by these … commitment problems prevent first-best risk sharing, but never optimal to provide incentives exclusively via this technology …
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Final-offer arbitration (FOA) is a widely used binding dispute resolution mechanism, where an impartial arbitrator is … likelihood of non-arbitrated settlement and make the final offers converge to each other. Risk aversion is not necessary …
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