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Risk Pooling in the Presence of Moral Hazard

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  • Joseph G. Eisenhauer

Abstract

The size of an insurance pool that minimizes average risk per policy is derived for cases in which moral hazard offsets the benefits of pooling.

Suggested Citation

  • Joseph G. Eisenhauer, 2004. "Risk Pooling in the Presence of Moral Hazard," Bulletin of Economic Research, Wiley Blackwell, vol. 56(1), pages 107-111, January.
  • Handle: RePEc:bla:buecrs:v:56:y:2004:i:1:p:107-111
    DOI: 10.1111/j.1467-8586.2004.00191.x
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    References listed on IDEAS

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    1. Manning, Willard G. & Marquis, M. Susan, 1996. "Health insurance: The tradeoff between risk pooling and moral hazard," Journal of Health Economics, Elsevier, vol. 15(5), pages 609-639, October.
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    Cited by:

    1. Niousha Shahidi, 2014. "Moral hazard and optimal insurance contract with a continuum effort," Economics Bulletin, AccessEcon, vol. 34(3), pages 1350-1360.
    2. Daniel Alfredo Revollo-Fernandez & Alonso Aguilar-Ibarra, 2014. "Measures of risk associated to regulations compliance: a laboratory experiment on the use of common-pool resources," Journal of Risk Research, Taylor & Francis Journals, vol. 17(7), pages 903-921, August.

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