The impact of information distribution on optimal risk-sharing between different parties has been an important field of research over the past 30 years. In the literature of insurance, however, the focus has remained essentially on one configuration: insurers (the principal) propose a contract to insured (the agent), but are unable to observe perfectly the risk of their insured who can. This as...

To hedge its written call, the issuing firm decides to buy shares of the underlying stock or portfolio. The number of shares purchased at time t will depend on the price of the underlying stock at t and on the amount of time remaining until the expiration of the call. Another way of viewing this is that the amount of stock held against the call position depends on the probability that the optio...

OBJECTIVES This study examines the factors that influence make or buy decisions corresponding to four generic services (housekeeping, laundry, food services, and maintenance and security) in Spanish hospitals (3,160 transactions in 790 hospitals). METHODS The empirical estimation of a logistic model based on hospital utility maximization is presented. Factors included in the model are not onl...

In this paper, we solve an optimal reinsurance problem in the mathematical finance area. We assume that surplus process of insurance company follows a controlled diffusion and constant interest rate is involved financial model. During whole optimization period, has choice to buy contract decide retention level. Meanwhile, bankruptcy at terminal time not allowed. The aim minimize distance betwee...

Due to the domain characteristics of business ethics, a contractarian theory for business ethics will need to be essentially different from the contract model as it is applied to other domains. Much of the current criticism of contractarian business ethics (CBE) can be traced back to autonomy, one of its three boundary conditions. After explaining why autonomy is so important, this article cons...