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Li-Wei Zheng

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Open access Jul 2026

Moral hazard in insurance markets with distortion risk measures

This paper studies optimal insurance design in a competitive market with one policyholder and multiple insurers. The policyholder’s risk preferences are modeled by a distortion risk measure, and the loss distribution depends on prevention effort, which reduces the loss amount; insurers price contracts using a common...

T. Boonen, Li-Wei Zheng · 1 citation

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