ACTSC 967 - Foundations of Insurance Economics

This course deals with the foundations of insurance economics and the theory of risk sharing in both centralized and decentralized insurance markets. The topics covered include the basics of the theory of choice under uncertainty and preference representations, risk aversion and measures of risk, Pareto optimality in insurance contracting under expected-utility and non-expected-utility models of preferences, as well as Pareto-optimal risk sharing in peer-to-peer insurance. Additional advanced topics, such as moral hazard and adverse selection in insurance contracting, may also be included.