Finding Pareto Optimal Insurance Contracts
AbstractThis note deals with on-line computation or learning of Pareto optimal insurance contracts. We account for the fact that the loss distribution often is unknown, unavailable, or intractable. Alternatively, the contracting parties could be inexperienced. In both cases loses must be simulated or observed, one at a time, these causing iterated revision of the premium. The mechanical nature of probability calculus thus yields to more tentative procedure, possibly closer to how humans operate or reason in face of risk. Emphasized here is the remarkable simplicity and stability of the resulting procedures. Special attention goes to catastrophic risks and subsidized insurance.
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Bibliographic InfoPaper provided by International Institute for Applied Systems Analysis in its series Working Papers with number ir00033.
Date of creation: Jun 2000
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Other versions of this item:
- Ermoliev, Y.M. & Flam, S.D., 2001. "Finding Pareto Optimal Insurance Contracts," Norway; Department of Economics, University of Bergen 0501, Department of Economics, University of Bergen.
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-07-11 (All new papers)
- NEP-IAS-2000-07-11 (Insurance Economics)
- NEP-IND-2000-07-11 (Industrial Organization)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Pincheira, Pablo & Zeuli, Kimberly A., 2005.
"Cooperative and Area Yield Insurance: A Theoretical Analysis,"
2005 Annual Meeting, November 8-9
31822, NCERA-194 Research on Cooperatives.
- Pincheira, Pablo & Zeuli, Kimberly, 2007. "Cooperatives and Area Yield Insurance:A Theoretical Analysis," MPRA Paper 6174, University Library of Munich, Germany.
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