This post breaks down who actually ends up purchasing insurance and how this affects the entire market, and ultimately the cost of insurance. [...]

How does insurance work and why is it so complicated? We will begin to answer these questions and more in a three part series on insurance markets. Simply put, insurance is the business of buying and selling risk. In many situations, businesses and individuals are risk-averse. This means that they would prefer to pay some amount of money to reduce the amount of uncertainty in a situation.

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In the wake of the forcible removal of a passenger from an overbooked flight this week, we are looking at the economics behind why airlines overbook. [...]

Every year since 1999, the Madden NFL video game cover has featured an NFL star player from the previous year, similar to an athlete being featured on the Wheaties box. Fans have noticed a trend where these star players end up playing worse or even getting injured the following year. Hence the idea of a “Madden Curse,” and a subset of fans who are adamantly opposed to their favorite players being featured on the cover. [...]

Who do you think the next President of the United States will be or the winner of the 2018 World Cup? Read about the power of prediction markets. [...]