This paper analyzes the impact of biased beliefs on the structure of informational equilibria in classical self-selection models. Using the intuitive insurance market example of Rothschild-Stiglitz (1976) I show that biases of high-risk individuals have fundamentally different effects on equilibrium contracts than biases of low-risk individuals. Whereas equilibrium contracts of both groups are ...

Comparative legal and normative analysis of the Serbian Civil Code provisions from 1844 (hereinafter referred to as SCC) on insurance contracts is subject this paper. Since it a tradition period restoration statehood struggle for fi nal liberation Ottoman Empire, SCC could not reflect achievements domestic theory case law. Jovan Hadžić, author Code, given his education positive law in Vojvodina...

introduction: the rapid increase in health costs across the world has forced governments to use insurance programs. uncontrolled costs would reduce the financial ability of insurance organizations in providing services. abuse of health insurance wastes 3-15% of the health budget annually. this study was conducted to determine cases of violating the rules and regulations of medical services insu...

We define, characterize and compute Markov-perfect risk-sharing contracts in a dynamic stochastic economy with endogenous asset accumulation and simultaneous limited commitment and moral hazard frictions. We prove that Markov-perfect insurance contracts preserve standard properties of optimal insurance with private information and are not more restrictive than a longterm contract with one-sided...

This study provides evidence of the potential hedging effectiveness of insurance derivatives based on regional estimates of catastrophe losses. We estimate the percentage of insurers’ by line and state underwriting risk that could have been eliminated over the 1974 through 1994 period if they had hedged using state-specific catastrophe derivatives based on Property Claims Service (PCS) reported...