WP 2018

WP 2018-04 Do People Bundle Sequences of Choices? An Experimental Investigation

Posted On July 16, 2018
Categories Working Papers, WP 2018

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ABSTRACT: Economists and psychologists have sought to model and explain both impulsive behavior and the costly but often successful mechanisms by which people control it. Ainslie [1975][1992][2001] suggests that self-control is often achieved on account of a phenomenon he calls “choice bundling.” This refers to re-framing of series of discrete… more »

WP 2018-02 Reinsurance Versus Securitization of Catastrophe Risk

Posted On March 27, 2018
Categories Working Papers, WP 2018

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ABSTRACT: We provide a novel explanation for the low volume of securitization in catastrophe risk transfer using a signaling model. Relative to securitization, reinsurance features lower adverse selection costs because reinsurers possess superior underwriting resources than ordinary capital market investors. Reinsurance premia, however, reflect markups over actuarially fair premia due to the… more »