Risky Business

“The authors, three US-based academics, keep the debate moving along with a chatty, breezy style… . The book hits its stride with the thornier problems insurance companies and their customers are beginning to face.”—Oliver Ralph, Financial Times“The authors, professors at Stanford, MIT and Boston, do a masterful job of explaining the intractable complexities created by this socially vital activity.”—Martin Wolf, Financial Times, “Best Books of 2022: Economics”“The problem of hidden information is central to understanding insurance, and the nature of markets more generally. The very human cat-and-mouse stories that animate Risky Business are not only great fun; they also subtly reveal the basis of a great deal of economics.”—George Akerlof, Nobel laureate in Economic Sciences“Most people—indeed, most policy makers—don’t fully get why the insurance business is really different from selling televisions or broccoli or even other financial products. Risky Business gives an accessible tour of why insurance is a special case and why it matters. Without a doubt, it is likely to be the most fun book you will ever read that includes the word ‘insurance’ in the title.”—Austan Goolsbee, former chair of the Council of Economic Advisors“Risky Business does the seemingly impossible: it makes insurance fun! Picture the most interesting book you can imagine about insurance; I promise you, this book is three times better than the one you imagined. Throw out the economics textbooks—this is how people should learn economics!”—Steven D. Levitt, coauthor of Freakonomics“This book is a fascinating look at how insurance markets work (or don’t). It’s a must read for people seeking to understand their own choices, and for policy makers who shape those options.”—Emily Oster, author of The Family Firm

Liran Einav is professor of economics at Stanford University.

Amy Finkelstein is the John and Jennie S. MacDonald Professor of Economics at MIT.

Ray Fisman is the Slater Family Chair in Behavioral Economics at Boston University.