We consider a risk-averse firm facing output price uncertainty. Contrary to Machnes (1995), we show that a fair deductible insurance does not need to increase the optimal level of output. We provide some sufficient conditions to obtain an unambiguous comparative static effect.
β¦ LIBER β¦
Deductible insurance and production
β Scribed by Yaffa Machnes
- Publisher
- Elsevier Science
- Year
- 1995
- Tongue
- English
- Weight
- 336 KB
- Volume
- 17
- Category
- Article
- ISSN
- 0167-6687
No coin nor oath required. For personal study only.
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