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 insurance
• Provides a clear exposition of the necessary mathematics, a feature which cannot be found in readers on the topic
• Utilizes an undergraduate economics major level of math
• Uses the simplest economic models possible to keep the text intuitive
• Introduces more mathematically complex techniques such as basic optimization for students wishing to 'go further' in their analysis