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Handbook of the Economics of Risk and Uncertainty
book

Handbook of the Economics of Risk and Uncertainty

by Mark Machina, W. Kip Viscusi
November 2013
Beginner content levelBeginner
896 pages
35h 10m
English
North Holland
Content preview from Handbook of the Economics of Risk and Uncertainty
Benjamin E. Hermalin
288
The derivative of virtual surplus is
It immediately follows that
Observe some low types are shut out. The transfer function is, from (6.2.17),
Observe the transfer can be reexpressed as a traditional tariff:
32,
33
It is readily verified that there are quantity discounts (e.g., 2T(x)> T(2x)).
6.2.2 The Monopoly Provision of Insurance
The analysis of the previous subsection covers a wide variety of trading situations and,
via suitable redefinition of variables, an even wider array of contractual situations, but
(2β
1
c(1
+
x)
1 + x
.
x(β) =
0, if β
γ +c
2γ
(2β1 c
c
, otherwise
.
t
(β) = βγ log
(
x(β) + 1
)
β
0
γ log
(
x(z) +1
)
dz
=
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Publisher Resources

ISBN: 9780444536853