Skip to main content

The Economics of Risk and Insurance

The Economics of Risk and Insurance

S. Hun Seog

ISBN: 978-1-405-18552-3

Mar 2010

352 pages

Select type: Hardcover

In Stock

$78.95

Description

Written for advanced undergraduate and master’s level courses, this book builds from a base of asymmetric information issues to discuss a wide array of topics and is illustrated with some timely examples.
  • Covers diverse issues such as risk aversion, expected utility, and moral hazard within the pure theory of insurance
  • Provides a clear exposition of the necessary mathematics, a feature which cannot be found in readers on the topic
  • Utilizes an undergraduate economics major level of math
  • Uses the simplest economic models possible to keep the text intuitive
  • Introduces more mathematically complex techniques such as basic optimization for students wishing to 'go further' in their analysis
0. Introduction.

Part I: Fundamentals of Insurance.

1. Risk and Expected Utility.

2. Risk Aversion and Riskiness.

3. Principles of Insurance: Risk Sharing and Transfer.

Part II: Demand for Insurance and Insurance Contract.

4. Risk Aversion and Insurance.

5. Corporate Insurance and Risk Management.

6. Liability and Insurance.

Part III: Information and Insurance Contract.

7. Basic Adverse Selection Models.

8. Advanced Topics in Adverse Selection.

9. Moral Hazard.

10. Ex Post Moral Hazard and Fraud.

Part IV: Insurance Market.

11. Insurer Organization.

12. Competition in the Insurance Market.

13. Insurance Cycle and Capacity.

Part V: Insurer Management.

14. Insurance Distribution Systems.

15. Insurance Pricing.


  • Covers diverse issues such as risk aversion, expected utility, and moral hazard within the pure theory of insurance
  • Provides a clear exposition of the necessary mathematics, a feature which cannot be found in readers on the topic
  • Utilizes an undergraduate economics major level of math
  • Uses the simplest economic models possible to keep the text intuitive
  • Introduces more mathematically complex techniques such as basic optimization for students wishing to 'go further' in their analysis