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Dynamic Games and Applications Seminar

Insurance choices and emission taxation


Feb 1, 2024   11:00 AM — 12:00 PM

Gianluca Iannucci University of Florence, Italy

Gianluca Iannucci

Presentation on YouTube.

We analyze a duopoly composed of a clean and a dirty firm. The dirty one has to pay an emission tax. Both firms face a random loss that is a function of the dirty firm’s output. The firms can reduce the risk by stipulating an insurance contract and choosing a coinsurance rate. The game develops in three stages: 1) strategy selection, 2) output choices, 3) insurance decisions. We find that not only taxation but also insurance, under some conditions, can favor a green transition.

Georges Zaccour organizer


Online meeting
Montréal Québec

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Research Axis

Research application