The Economics of Risk and Insurance

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 insuranceProvides a clear exposition of the necessary mathematics, a feature which cannot be found in readers on the topicUtilizes an undergraduate economics major level of mathUses the simplest economic models possible to keep the text intuitiveIntroduces more mathematically complex techniques such as basic optimization for students wishing to 'go further' in their analysis