Market or clan: A comparative study of risk sharing institutional evolution in China and Europe

Abstract

Abstract In the psychological and sociological framework of risk, we establish a static and dynamic equilibrium model for risk‐sharing institutional evolution. Particularly, through a comparative study of marine insurance development in China and Europe, we address a wide set of research questions concerning why China and Europe relied on different social organizations for risk sharing.

Keywords

• ambiguity
• culture
• institutions
• insurance
• risk