Case Study

Designing an 18th-Century Insurance Policy

Critique both policy structures described in the case study below. Which policy is better designed to counteract the specific problem of merchants reducing their safety efforts after an insurance contract is signed? Justify your evaluation by explaining the strengths and weaknesses of each policy in addressing this specific behavioral risk.

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Updated 2025-08-21

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Introduction to Microeconomics Course

The Economy 2.0 Microeconomics @ CORE Econ