Editing Decentralized underwriting (section)

== Economic analysis ==
In this section we compare this decentralized scheme with the traditional insurance model, analyzing the microeconomics of supply and demand, moral hazards and adverse selection.<ref name=":0">As an example, one general model concludes that under certain assumptions, 0 reserves are required, while changing parameters in the same model leads to the conclusion that full coverage of all possible claims leads to optimal outcomes. See, e.g., Ray Rees & Achim Wambach (2008) ''The Microeconomics of Insurance'', Now Publishers, pp 63-70.
</ref> <ref>Hugh Gravelle & Ray Rees (2006) ''Microeconomics,'' ''3rd ed.'', Pearson.</ref>