Course: Insurance Economics (5303-411)

Persons:

• Prof. Dr. Jörg Schiller (verantwortlich)

Type of Course:

lecture with exercise

In-Class Hours Per Week:

3

Contents:

The lecture covers advanced topics of decision theory under uncertainty. First of all, the course deals with concepts for measuring risk and risk aversion. The latter analysis is a foundation for the main focus of this course: the optimal design of insurance contracts. A starting point is the design of optimal contracts under symmetric information. Furthermore problems of asymmetric information, like adverse selection and moral hazard, as well as the interaction of insurance and repair markets are discussed. The lecture closes with the economic analysis of insurance fraud. The module consists of a lecture and additional tutorials.

Literature:

Eeckhoudt, L., C. Gollier, und H. Schlesinger (2005): Economic and Financial Decisions under Risk, Princeton, Kapitel 1 - 3.

Gravelle, H. und R. Rees (2004): Microeconomics, Third Edition, Harlow.

Kreps, D.M. (1990): A Course in Microeconomic Theory, Harlow, S. 661 - 680.

Location:

Hohenheim

Remarks:

Lecture and exercise notes will be available on ILIAS at the beginning of the semester.

Module:

• 5303-440 Insurance Economics (compulsory)
• 5303-410 Health Insurance & Social Security 1 (compulsory)
• 5303-480 Advanced Topics of Health Care & Public Management 1 (semi-elective)
• 5303-450 Insurance Economics (compulsory)