On Mutual Insurance
Owners of stochastic assets can pool their endowments to smoothen and insure individual payoffs across outcomes and time. We explore, in such a setting, how contingent shadow prices on aggregate resources can be used for three purposes: First, to design mutual contracts for risk averse agents; second, to quantify the malfunctioning of such contracts when there are risk lovers (or scale economies); and third, to estimate reasonable premiums for insurance offered by outside agents.
|Date of creation:||Jan 2000|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.iiasa.ac.at/Publications/Catalog/PUB_ONLINE.htmlEmail:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:wop:iasawp:ir00002. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel)
If references are entirely missing, you can add them using this form.