Equilibrium in Competitive Insurance Markets, The Welfare Economics of Moral Hazard: Basic Analytics

摘要: This paper is the first in a series. Among results are: 1) Indifference curves between premiums and payouts are not generally quasi-concave; as result price- income-consumption lines continuous; 2) Accident prevention effort continuous or monotonic parameters of insurance contract; 3) The set feasible contracts, convex.