publication . Article . Other literature type . Part of book or chapter of book . 1968

Aspects of Rational Insurance Purchasing

Name: Aspects of Rational Insurance Purchasing
Creator: Jan Mossin

Jan Mossin;

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Published: 01 Jul 1968 Journal: Journal of Political Economy, volume 76, pages 553-568 (issn: 0022-3808, eissn: 1537-534X,

Publisher: University of Chicago Press

Summary

Abstract

Problems concerned with purchasing of insurance coverage appear to be a fascinating and potentially fruitful field for application and testing of theories of riskbearing. In this note we shall analyze a series of such problems from the point of view of an individual facing certain risks. Given his risk situation and his economic background (as measured by his initial wealth), his problem is to decide whether he should provide for insurance coverage and, if so, how much.