TY  - RPRT
        AU  - Bell, Clive
AU  - Gersbach, Hans
AU  - Haller, Hans
        TI  - Mutual Insurance in the Village and Beyond
        PY  - 2024/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17406
        UR  - https://www.iza.org/index.php/publications/dp17406
        AB  - When formal insurance is unavailable, mutual insurance among households can serve as an alternative. This paper analyzes a game between economic agents facing uncertainty and maximizing discounted utility without enforceable contracts or access to capital markets. While autarky is always a possible outcome, under high discount factors, a mutually beneficial trigger-strategy equilibrium can be achieved. Full insurance is possible with strongly negatively correlated endowments, while partial insurance is generally feasible. The analysis highlights environments wherein varying levels of insurance can emerge, with applications to real-world institutional contexts.
        KW  - mutual insurance
KW  - risk sharing
KW  - group formation
        ER  -