This article deals with optimal insurance contracts in the framework of imprecise probabilities and adverse selection. Agents differ not only in the objective risk they face but also in the perception of risk. In monopoly, a range of configurations that VNM preferences preclude appears: a pooling contract may be optimal, incomplete coverage may be offered to high risks, low risks may be better covered.
机构:
Departamento Teoría E Historia Económica, Universidad de Málaga, Campus El Ejido, E-29013, MálagaDepartamento Teoría E Historia Económica, Universidad de Málaga, Campus El Ejido, E-29013, Málaga
Amorós P.
Moreno B.
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Departamento Teoría E Historia Económica, Universidad de Málaga, Campus El Ejido, E-29013, MálagaDepartamento Teoría E Historia Económica, Universidad de Málaga, Campus El Ejido, E-29013, Málaga
机构:
Department of Agricultural and Resource Economics, University of California, Davis, One Shields Avenue, Davis, 95616, CADepartment of Agricultural and Resource Economics, University of California, Davis, One Shields Avenue, Davis, 95616, CA
Goodhue R.
Simon L.
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Department of Agricultural and Resource Economics, University of California, Berkeley, Berkeley, 94720-3310, CA
Department of Economics, Monash University, MelbourneDepartment of Agricultural and Resource Economics, University of California, Davis, One Shields Avenue, Davis, 95616, CA