Thoughts on economics and liberty

Insurance as a regulatory tool

Just like reputation places a very significant regulatory function, insurance plays (or can play) a significant role in ensuring good behaviour.

Short overview: How Insurance Substitutes for Regulation – Omri Ben-Shahar and Kyle D. Logue

Fuller academic articleOutsourcing Regulation: How Insurance Reduces Moral Hazard – Omri Ben-Shahar, University of Chicago Law School and Kyle D. Logue, University of Michigan Law School [PDF]

I believe dynamic and information-rich insurance and reputational mechanisms can be far more effective than static mechanisms like occupational licensing.

Sanjeev Sabhlok

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