No Money Without Mathematics - Colegiul National C. Negruzzi (Iași - Roumanie)

This project aims to solve the problem of the consumer who decides to take an insurance in order to protect himself of a potential risk/damage. With the use of an utility function, we will try to see what are the proper values for the prices of an insurance, so that both consumer and producer are fully satisfied. We will also try to test a paradox that challenges the classical theory and why this way of analyzing risk might have its faults. Throughout the process, we will also answer to an adjacent question, namely, if risk sharing among individuals is always better