In this relatively short survey, we present the core elements of the microeconomic analysis of insurance markets at a level suitable for senior undergraduate and graduate economics students. The aim of this analysis is to understand how insurance markets work, what their fundamental economic functions are, and how efficiently they may be expected to carry these out. Full text available at: http...

The consumption set X is the set of all conceivable consumption bundles q, usually identified with R+ The budget set B ⊂ X is the set of affordable bundles In standard model individuals can purchase unlimited quantities at constant prices p subject to total budget y. The budget set is the Walrasian, competitive or linear budget set: B = {q ∈ R+|pq ≤ y} Notice this is a convex, closed and bounde...

from them. The Adam Smith Address: Location, Clusters, and the “New” Microeconomics