Game Theory Applied to Life Insurance


Add to cart
Essay #: 054012
Total text length is 5,239 characters (approximately 3.6 pages).

Excerpts from the Paper

The beginning:
Game Theory Applied to Life Insurance
Should a consumer buy term life insurance or not? The answer to this question can be modeled, although with highly questionable validity, by game theory.
Game theory has long been utilized by the insurance industry to determine who to insure, and how much to charge them for insurance, based on statistics associated with illness and mortality (Spiegel 1991, p. 136). The reason that the interaction between a consumer and an insurance company can be characterized as a game is twofold: each side is betting on an outcome; and each side is playing against the other (Miller 2003, p. 215). In the term life insurance scenario, the decision to buy has a different twist, as the potential consumer is playing not...
The end:
.....xt. New York: Routledge
Katz, L.D. (2000). Evolutionary origins of morality. New York:
Imprint Academic
Miller, J.D. (2003). Game theory at work: how to use game theory
to outthink and outmaneuver your competition. New York:
McGraw-Hill Professional
Spiegel, H.W. (1991). The growth of economic thought. Durham,
NC: Duke University Press
Tribe. K. (2003). Continental political economy. In T.M. Porter
& D. Ross (Eds.), The Cambridge history of science.
Cambridge: Cambridge University Press, 154-170.
Troutt, M.D. (1988). A purchase timing model for life insurance
decision support systems. Journal of risk and insurance (December 1988), 628-643
Udehn, L. (2001). Methodological individualism: background,
history, and meaning. London: Routledge