I am pleased to participate in this Summer School and look forward
to sharing some ideas with you over the next few days. At the
outset I would like to describe the approach I will take in 1
presenting the material. I aim to present the material in a non
rigorous way and hopefully in an intuitive manner. At the same time
I will draw attention to some of the major technical problems. It
is pitched at someone who is unfamiliar with the area. The results
presented here are unfamiliar to actuaries and insurance
mathematicians although they are well known in some other fields.
During the next few minutes I will make some preliminary comments.
The purpose of these comments is to place the lectures in
perspective and motivate the upcoming material. After this I will
outline briefly the topics to be covered during the rest of this
lecture and in the lectures that will follow. One of the central
themes of these lectures is RISK-SHARING. Risk-sharing is a common
response to uncertainty. Such uncertainty can arise from natural
phenomena or social causes. One particular form of risk-sharing is
the insurance mechanism. I will be dealing with models which have a
natural application in the insurance area but they have been
applied in other areas as well. In fact some of the paradigms to be
discussed have the capacity to provide a unified treatment of
problems in diverse fields."
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