In the first part of the course we provide an introduction of the theory of choice under uncertainty, by presenting the expected utility model and the concept of risk aversion. Starting by a model of efficient risk sharing, we show the foundations of insurance theory. In the second part of the course we introduce the principal-agent model, the problems of adverse selection, moral hazard and the optimal incentive theory. A particular attention will be devoted to applications to the insurance market.
|MILGROM P.-ROBERTS J.||Economia, organizzazione e management. Vol. I.||Il Mulino||2005||8815106650||introduzione|
|C. GOLLIER||The Economics of Risk and Time||MIT press||2001||approfondimento|
|LAFFONT J.J. - MARTIMORT D.||The theory of incentives. The principal agent model||Princeton University Press||approfondimento|