Self-insurance and market insurance substitutability: An established tenet reconsidered

Substituabilité entre l'auto-assurance et l'assurance sur le marché: réexamen d'un principe bien établi

Jean-Marc Bourgeon and Pierre Picard

Post-Print from HAL

Abstract: We study the interaction between self-insurance and market insurance when accident losses are multivalued. We show that self-insurance and market insurance may be complementary when self-insurance expenses do not affect much the probability distribution of large losses and the loading factor is high. This contrasts sharply with the conclusion of Ehrlich and Becker (1972) who establish the substitutability between self-insurance and market insurance when the cost of an accident is single-valued.

Keywords: Self-insurance (search for similar items in EconPapers)
Date: 2026-05
References: Add references at CitEc
Citations:

Published in Journal of Economic Theory, 2026, 234, pp.106180. ⟨10.1016/j.jet.2026.106180⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Self-insurance and market insurance substitutability: An established tenet reconsidered (2026)
Working Paper: Self-insurance and market insurance substitutability: an established tenet reconsidered (2025)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05626054

DOI: 10.1016/j.jet.2026.106180

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().