Optimal Insurance: Dual Utility, Random Losses and Adverse Selection by Mengxi Zhang

Join us for another event in the DYNMECH Seminar Series, Autumn Term 2022.

Mengxi Zhang from the Department of Economics, University of Bonn will present their research on  Optimal Insurance: Dual Utility, Random Losses and Adverse Selection

Abstract

We study a generalization of the classical monopoly insurance problem under adverse selection where we allow for a random distribution of losses, possibly correlated with the agent's risk parameter that is private information. Our main purpose is to provide a convenient analytical model that explains both the pattern of observed customer behavior and the pattern of insurance contracts most often observed in practice: these consist of menus of several deductible-premium pairs, or menus of insurance with coverage limits - premium pairs. The main departure from the classical insurance literature is obtained here by endowing the agents with risk-averse preferences that can be represented by a dual utility functional.

This seminar will be held in the Economics Common Room on Monday 14 November 2022 at 4pm. This event is open to all levels of study and is also open to the public. 

To register your place and gain access to the webinar, please contact the seminar organisers.

This event is part of the Microeconomics Research Seminar Series.