Abstract
Problems concerned with purchasing of insurance coverage appear to be a fascinating and potentially fruitful field for application and testing of theories of riskbearing. In this note we shall analyze a series of such problems from the point of view of an individual facing certain risks. Given his risk situation and his economic background (as measured by his initial wealth), his problem is to decide whether he should provide for insurance coverage and, if so, how much.
An earlier version appeared as CORE Discussion Paper No. 6705. It was written during the author’s stay as visitor to the Center for Operations Research and Econometrics, University of Louvain.
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© 1992 Springer Science+Business Media New York
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Mossin, J. (1992). Aspects of Rational Insurance Purchasing. In: Dionne, G., Harrington, S.E. (eds) Foundations of Insurance Economics. Huebner International Series on Risk, Insurance and Economic Security, vol 14. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-7957-5_5
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DOI: https://doi.org/10.1007/978-94-015-7957-5_5
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