• Propose an insurance model with multiple risk environments. Solve Pareto optimal experience refunds, indemnity profiles, and premiums. Show that layer-type indemnities, within each environment, are optimal. Explore the effect on profiles by probabilities of to allocate sharing gains equally between buyer seller. Optimal arrangements have been substantially studied in literature, from aspects ...

Abstract We quantitatively evaluate a model of insurance with limited commitment where the requirement that contracts be immune to deviations by subcoalitions makes group size endogenous, as proposed Genicot and Ray. compare model’s predictions panel data from rural Indian villages. Apart predicting realistic degree insurance, captures evidence along two new dimensions: First, largest coalition...