The Valley Essays - Political Culture, Social Agreement,

The Valley 1. There are several instances in The Valley that show that customs and traditions pass on through different generations. The first example takes place with the first sketch, Jehu. Where Hinojosa describes how a girls hand in marriage is traditionally asked for. Hinojosa weaves in two different generation performing the same tradition, Roque Malacara, asking for Tere, and Braulio Tapia taking in retro-spect about his own experience, when he too had to face his father-in-law and ask for his wives hand in marriage. Another example of traditions is the giving of nicknames, or apodos. From making the name easier, to naming them for a characteristic, nicknaming is seen through out the different generations, families, and cities. Like Vicky for Eduviges, Panchita for Francisca, Chedes for Mercedes, and Rafa for Rafael. Nicknames were also give for other reasons like physical or personality characteristics, such as Hoarsey because his voice was that, or Mion because he happen to pee in his pants. Yet another example of traditions and customs through out different generations, is the oral tradition. Jehu and Rafa both narrate part of their story, the same way the viejiots did about the Revolution. The same way their children with talk about their own experience. The oral tradition is one of the ways customs or traditions are kept alive through out the years. Creative Writing

Art, Drama, Music and Elements of Play Essays

Art, Drama, Music and Elements of Play Essays Art, Drama, Music and Elements of Play Essay Art, Drama, Music and Elements of Play Essay Art is of import. Even as grownups, we do bask prosecuting in different signifier of humanistic disciplines. The art has been associated with private leisure experience, separated from the chief concern of life. The humanistic disciplines are of course playful nevertheless we should non tie in it as unrealistic or deficiency of earnestness ( Swanwick, 1988 ) . Playing is portion of acquisition and humanistic disciplines can assist kids boom personally and emotionally ( Swanwick, 1988 ) . The humanistic disciplines are complementary portion of a wide instruction ; the humanistic disciplines when taught good can assist raise attainment in other countries as they are closely entwined with other larning countries ( Humanistic disciplines in Schools Project, 1990 ) . Drama comes of course to immature kids and they are frequently prosecuting in make-believe drama. Children dramatic experience should be supported in school with activities that develop the kid s ability to utilize his or her imaginativeness, organic structure and voice. Drama allows kindergartners to show themselves freely and interact with others. Some dramatic activities in which have been conducted in category since the taught faculty was drama games and role-play. The activities conducted were the Jungle game ( similar to fruit salad ) and freeze game . Through the activities, the kids were encouraged to research the restrictions and the possibilities of motion inside a given infinite. The kids learnt to portion infinite with others and how to associate to others playful manner. They explored how infinite, and people or objects in infinite, can hold symbolic and dramatic significances ( Winston and Tandy, 2009 ) . During the period of clip, we were working on the subject of animate beings, therefore I made usage of some of the games taught during the faculty and modified a small. The kids were from the age scope 4 to 6 old ages old. There were two new kids who were in the category for less than a month. They were Chinese exile and did non understand English. One kid was more diffident and withdrawn. He normally merely interacts with the other kid who was besides from China. However during the activity, all the kids were seen prosecuting in the activity. At first during Jungle game the kids were given new function which are different types of animate beings in the jungle. They had to swopped topographic points when their animate beings were called ; when huntsman is called out, everyone had to trade topographic points. In the procedure, some kids were seen strike harding into each other and most merely went to the few seats off from them. However, after a few unit of ammunitions with the ga me, they were able to research the possible motion inside the specified topographic point. The kids were able to research and portion the infinite without strike harding into each other. Even the two China male childs were able to prosecute in the activity and pretended to be the animate beings by copying their motions as they move in the circle. As for the freezing game, the kids pretended to be animate beings traveling in the jungle, avoiding to be caught by the huntsman. It was surprised that the kids imitated the sounds of the animate beings as they moved when it was non told to them that they had to. It was astonishing how dramatic games can take kids into different universe demoing their different side and creativeness. Another activity conducted was interview of the character in the narrative. During that period we were working on the subject of animate beings, therefore I made usage of the narrative The forest kid and pretended to be the huntsman. The kids were truly involved in the activity and took bends to inquire inquiries. That was the first clip that we engaged in this sort of activity therefore the kids were excited and eager to inquire inquiries. After several inquiries, I was surprised that the male childs from China really put up their custodies and asked inquiry: Why you so angry . I did non believe that they could understand the activity we were prosecuting in, non to even state ask inquiry utilizing English linguistic communication, which was a foreign linguistic communication to them. Through this activity, the kids could come in into the universe of the narrative and seek to happen solutions. As the kids are familiarised with the activity, they took bends to be the huntsman. Through the activities, the kids learnt to take bends by esteeming other s part, develop spacial consciousness, and explore ain organic structure possibilities through imitating of different characters. Minimal props were used during the activities to promote more imaginativeness. Through inventive drama, kids are experimenting with and larning how to pull off the nucleus elements of play, those of clip, infinite, people, action objects and capable affair ( Winston and Tandy, 2009 ) . Drama is a great manner in supplying kids the chances to larn about themselves and others. It encourages interaction with each other and learn about organic structure and spacial consciousness. During play, kids are besides encouraged to believe otherwise. During role-play, they can go others, heightening the creativeness, and promoting them to believe about what certain people might believe, state, or do in a given state of affairs. It allows kids to conceal behind a mask and to be different. Music Music is a manner of cognizing the life of feeling ( Langer as cited in Swanwick, 1988 ) . In our preschool scene, we did non hold much opportunity for musical activity during lesson clip. It was normally during enrichment programmes which several kids will travel for their music lessons. During the faculty, many merriment and meaningful activities were taught which could be implemented into the preschool scene. The activity that was conducted with the kids was doing music through musical instruments. I made used of the activities planned with my group during the faculty presentation, which was sing the narrative of Large Aluminum . The kids were provided with musical instruments such as bells, tambourine, cymbal, maracas, membranophone, trigon and some other traditional musical instruments that were made of bamboos. The kids were given the chances to take and play the instruments harmonizing to different emotions and scenarios of the narrative. Music was combined with play work in this instance. One-half of the kids in the category acted out the narrative while the others created effects for the dramatization utilizing the instruments. The kids had to conceive of that they were in the narrative. Harmonizing to Swanwick ( 1988 ) , immature kids bask really loud and really soft sounds and are fascinated by tone and timber and they can get down to see music as expressive. It can be observed during the activity. The kids enjoyed researching the volume of sound produced from musical instrument. When it was exciting state of affairs, they played the music fast and loud, and soft when sad. They were able to find the velocity of music by playing the assorted musical instruments. The kids were able to make different look utilizing music. During the activity, two older male childs were observed to be taking the group in the alteration of the music. Working in cross-age groups enables younger kids to detect and larn from more experient scholars, while the chance to scaffold the acquisition of younger kids enables the older kids to clear up their thought ( Duffy, 1998, p.116 ) . Harmonizing to Duffy ( 1998 ) , kids need sufficient topographic point to work and easy accessible resources if they are to do the best usage of originative and inventive experiences. Thus pedagogues should supply more experience for art activities even when exterior of lessons. After the faculty, I tried the method of giving the kids freedom of entering. Recorder was introduced to the kids and it was placed in the music corner in the schoolroom. After a hebdomad, to my surprised, I heard the voices of the two male childs from China with a few other kids from the recording. At first they said their name and begun humming some unfamiliar music ( likely self-composed ) with accompany of the musical instruments. When they sang louder, the music became louder excessively. This showed that they could do usage of the pacing and kineticss harmonizing to the different emotions. There was look in the music formed. Through the activities, the kids could develop musical consciousness and accomp lishments in footings of pacing and kineticss. Elementss of drama Harmonizing to Swanwick ( 1998 ) , the three elements of drama important to larning through humanistic disciplines are mastery, imitation and inventive drama. All these three elements were apparent during the execution of the activities. For command, the kids were able to larn to work with others to do dramatic significance and control of the musical instruments, maintaining consistent beat. For imitation, the kids were able to cover with the expressive nature of the art signifier. They were able to do musical sounds that suggest different scenarios. Last for inventive drama, the kids could experiment with musical instruments until it suggest the appropriate scenario. The kids were besides seen experimenting with different motion during dramatic drama. Practice motivates kids as pattern Teachs them how to concentrate which in bends leads them to appreciate and bask the beauty of art they are larning and the pleasances of bring forthing work of quality ( Winston, 2010, p.77 ) . If we wish kids to be originative, we should guarantee that all kids feel valued and accepted ; therefore kids will experience secure to take hazards or do errors ( Duffy, 1998 ) . That was evident in the instance of the two Chinese male childs who were at first withdrawn from the group and easy got into the activities, prosecuting with the others. Decision As kids grow, it seems that much of the school twenty-four hours is taken up by nucleus topics ; creativeness and imaginativeness are frequently treated as extra or luxury. Thus it is the function of the pedagogues in assisting to guarantee that the kids have chances to prosecute in originative and inventive experience ( Duffy, 1998 ) . A cross-curricular attack allows us to pull on the entreaty ad potency of originative experiences to promote acquisition and development in all countries of the course of study. Children should be active participants in their acquisition. With appropriate planning, we can link art with many other countries of the course of study. This can supply valuable chances to put larning in existent life experience by doing narratives and populating through them, instead than hearing them told by the instructor. Humanistic disciplines provide originative release for kids ; kids will hold fun while they are learn, heightening a womb-to-tomb desire for acquisition.

Species and Its Descendants

Species and Its Descendants Species and Its Descendants Species and Its Descendants By Mark Nichol An assortment of diverse words stem from the Latin word species, which had two distinct meanings, one of which is â€Å"a particular kind, sort, or type†- the pertinent sense for the following terms. special: This word, coming into English from Old French, originally meant â€Å"better than ordinary† but later acquired the additional senses of â€Å"marked by a distinguishing quality† and â€Å"limited in function, operation, or purpose†; the noun specialist carries the latter connotation in describing someone with a narrow set of skills. The variant especial, taken from an Old French term meaning â€Å"important† or â€Å"preeminent†- treated in Modern French as spà ©cial- originally had the same meaning as special but later acquired the additional senses of â€Å"particular† and â€Å"peculiar,† as well as â€Å"intimate.† The adverbial form, especially, is now much more common than the adjectival form. specie: This technical term for coins, as opposed to paper currency, stems from the phrase â€Å"in specie,† meaning â€Å"in the actual or real form,† which in turn derives from an identical-looking phrase in Latin that means â€Å"in kind.† (The notion is that coins actually have monetary value, whereas paper currency merely represents such value.) species: Species denotes a distinct type of life-form, but this biological sense was preceded by multiple now-rare connotations such as â€Å"appearance,† â€Å"notion,† and â€Å"resemblance.† Originally, it was associated with a classification in logic. specific: This word, meaning â€Å"particular,† â€Å"precise,† or â€Å"special,† is an antonym of generic, just as, in biology, a species is more, well, specific than a genus. (Like species and specific, genus and generic are related.) specious: This term has undergone the most deviation from its original sense, which is â€Å"fair† or â€Å"pleasing.† (It stems indirectly from the Latin word species by way of speciosus, which means â€Å"good-looking† or â€Å"beautiful.†) Now, it pertains to superficial attractiveness or false validity or value. spice: This unexpected descendant of special, which denotes plant products used to season foods, derived from a later sense of species in Latin of â€Å"goods or wares,† pertaining to spices as a commodity. The additional, centuries-old, figurative sense of â€Å"something that provides relish or zest† survives, but the meanings â€Å"sample† and â€Å"trace† do not. The second sense of the Latin term species, derived from the verb specere, is discussed in this post. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Vocabulary category, check our popular posts, or choose a related post below:When to Capitalize Animal and Plant Names15 Words for Household Rooms, and Their SynonymsOne "L" or Two?

Barbara Ehrenreichs Pathologies of Hope Essay Example | Topics and Well Written Essays - 500 words

Barbara Ehrenreichs Pathologies of Hope - Essay Example Barbara Ehrenreich was targeting the audience of the Harper Magazine. This is a magazine that has covers a literate audience. It reaches both the educated and the general population. This audience recognizes the power of hope in life. This is because hope is embraced in different areas in the society. The organization of the essay reflects what I am doing with the controlling purpose. The essay begins with an overview of the general understanding of hope. Second, the essay summarizes Barbara Ehrenreich’s understanding of hope as presented in this article. Furthermore, examples are used to control the purpose. Also evidences from the article on how the author views hope are given supported with quotes. Finally, a conclusion is given in the author’s position on hope. For example, the author provides a scenario in which negative thoughts are of help than hope. In making the essay be built on evidence, there is the use of direct quotes. The quotes are from the article to in dicate an understanding and interpretation of the article. The quotes changed through the revision process. They were reduced to ensure that the number of words for the essay was reached. The use of quotes was used in making the essay more reliable because they supplemented the opinions and helped reduce wordiness. Finally, some quotes were paraphrased in the revision process to ensure that plagiarism is avoided and that new opinions are adopted. The author strategy of using life examples in criticizing hope is outstanding.

The introduction of Reddin Equipment Essay Example | Topics and Well Written Essays - 500 words

The introduction of Reddin Equipment - Essay Example Reddin Equipment utilized a customer-based model to win loyalty from its customers. In the contemporary business environment, the customers lay at the heart of the business and they have a great influence on organizational operability. Reddin equipment applies integrated communication strategies to market its products. To do this, the organization involves its customers in developing all its products. For instance, the 5M and 5E Limited Series Tractors was improved trough customer feedback (Reddin.com, 2014). The organization has opened efficient communication channels to ensure that the customers can contribute to the product design. In addition, the organization uses this approach to handle the employee issues. The organization has developed a good social relation within the organization to enhance teamwork and promote cooperation. As a result, the organization has continuously developed through both employee and customer loyalty. Loyalty from employees ensures that there is optima l production while customer loyalty has provided the organization an opportunity to increase its number of customers. However, the organization has survived amid challenges of a competitive market. In Canada, more equipment sellers have entered the market, leading to high competition. The entry on new equipment sellers has threatened the survival in this market. Competition has increased the organizations bargaining power, leading to competition in prices in this market. A reduction in the prices of products causes a great reduction in the profit margins for the organization (Profile Canada, 2014). To survive, the organization has embarked on pricing strategies to ensure that they are not face out of the business market. As such, the organization strives to satisfy the customer tastes and preferences while checking on its prices mechanism. Another challenge of the organization has been in developing an international strategy. The challenges of new market

Impact of Maori Identity on Healthcare

Impact of Maori Identity on Healthcare 2. The principles of kawanatanga and tinorangatiratanga and its impact on the delivery of effective healthcare services. a.) tino rangatiratanga and Maori self-determination over health Since the signing of the Treaty of Waitangi in 1840, there have been problems within the Maori community. For instance, majority of the Maori chiefs were deprived of sustaining the power to rule community. With this big issue, it influences the delivery of effective healthcare services to the Maori people. There were Maori people who became a health practitioner during the early years. Some of them became a doctor. One of the Maori pioneers in the promotion of health is Maui Pomare. He became a successful doctor and a good example of a health leader. During his time, he vigilantly promote health by sharing his knowledge to his people. He gave suggestions and ideas to his native people so they can have a better way of healthy living. For example, he promoted proper hygiene and good sanitation. He also encouraged them to improve and maintain a good environment and safe water supply. Maori self-determination over health is an excellent way on how they really want to improve their way of living. It is basically a way of how to deal independently with tough situations so they can survive with the ever changing world. They promote a good and effective system that will suit to their needs of their native people (Maori). One good example is during 2010, a group of Maori health practitioner (nurses) who made an initiative in providing health care support to a community of native Maori and became successful due to the assistance that they received from the government. As mentioned above, the Treaty of Waitangi has a big impact on how the government deals with the Maori people. The Tino rangatiratanga, which means full authority of the Maori chieftains over their lands, villages and treasured things, has been a big issue until now. For the past years, the Maori people received less support from the government. Their cry for reforms were neglected. In terms of receiving effective healthcare services, the Maori people receive less. Aside from that, there are more Maori people who are poor, less educated, receive low salary, and a lower life expectancy than the non-Maori. In my opinion, the delivery of effective healthcare services will be attained if the government will allow the Maori people to participate in the decision making and planning of healthcare services for the Maori people. It will be good if they will be able to find a way to solve the issues relating to the Tino rangatiratanga of the Maori people. In addition, it will be helpful if the non-Maori will support activities and plan to help the Maori community receives a better healthcare services. b.) impact of Maori identity, beliefs, values and practices on healthcare practice The Maori identity changes as the years go by. Since their first interaction with the Europeans during 19th century until the present day, they continue to adapt to the system headed by the crown. During the early years, Maori people experienced prejudice. They were not treated fairly by the government. There are few educated Maori due to lack of support system from the government. During 1960s, there were Maori who were against the government. Many activist was formed in order to get the attention of the government. In the 1970s, they started to gain attention from the government, and there was a gradual progress of health care practice in Maori community. Despite the improvement in health care, until now the Maori has a poor healthcare practice. One of the contributing factors for this is their low educational attainment. A good evidence of this is that they have the highest death rate among other people living in New Zealand. In addition, for the Maori, a tattoo on a face is impor tant for them. It is a part of their identity. By understanding and respecting them, they can be given a better health care management. Maori belief has a huge impact on healthcare practice. Majority of the Maori people believe on many gods. They worship idols and other non-living things. Maori believes that if they were sick, the gods are punishing them. Instead of seeking help from a doctor they will go to their religious leaders. As a result, there is high death rate among Maori people than the non-Maori. Maori values and practices are associated with status (mana), restriction/protection (tapu), and revenge/ maintenance of balance (utu). This values and practices affect the healthcare practice by causing some conflicts and misunderstanding with the healthcare provider. As a result, Maori people tends to break the treatment plan created by the healthcare provider which leads to poor treatment outcome. It is vital to recognize the identity, beliefs, values and practices of the Maori in the aspect of healthcare practice. Recognition by the healthcare provider of Maori identity, beliefs, values and practices has a big impact on healthcare practice. Government actions on fulfilling the principles of the Treaty of Waitangi will help to initiate improvements on healthcare practice for Maori people. c.) impact of healthcare provider’s own culture, history, attitudes and life experiences on Maori consumers The healthcare provider’s own culture, history, attitudes and life experiences has a big impact on Maori consumers. This is evident on the studies conducted by various groups of the past years that focused on Maori health issues. According to the different health statistics, Maori has the highest rate of death among the different people living in New Zealand. The causes are related to misunderstanding, discrimination, mistrust, and non-recognition of identity of Maori. This is basically due to the differences between the groups of people that have lived together, the Maori and the non-Maori. Different programs have been implemented by the government to aid the Maori people to receive a good quality of health service from various healthcare providers. Some health sectors, like the Nursing Council of New Zealand, have made guidelines for nursing education for giving the nurses a view and knowledge on identifying barriers that must be eliminated in giving care for the Maori consumers. Non Maori (pakeha) healthcare provider’s culture, history, attitudes and life experiences are different from the Maori. The populace of New Zealand composed of people who come from different parts of the globe and they can have different beliefs and traditions. Because of their differences, it can be difficult to give proper healthcare needs of consumers. It is necessary for the healthcare provider (pakeha) to recognize that the Maori consumers are diverse. If not recognized, healthcare provider will give a poor healthcare service to the Maori consumers. An example is, if a Non Maori received a bad experience from a healthcare provider, the next time he wishes to seek help from a healthcare provider, he will still seek help to the same healthcare provider. On the other hand, many Maori consumers, if they received a news that one of them have a bad experience from a certain healthcare provider, they will be discouraged and instead of seeking help for their poor health condition , they will just go to their elders for help. Recognizing that the Maori consumers are diverse will also help promote understanding, trust, and respect that are necessary for building a good relationship. All in all, understanding the Maori people is necessary to become a good healthcare provider. Health support programs must continue to strive and work hand in hand with the Maori to achieve a successful outcome.

Advanced Microeconomics Essay

Question 1: Consumer Theory 1.1: In both the Marshallian and Hicksian consumer optimisation problems, it is assumed that consumers are supposed to be rational. The main focus of these problems are cost minimisation and utility maximisation, which play a huge part in consumer demand, but in real life, these are not the only problems that are considered. Also, it is assumed that every consumer’s indifference curve for two goods would be the same – they are very generalised models, and do not take into account other factors. For example, not many consumers would spend their entire budget on said goods – one thing to consider would be a consumer’s marginal propensity to consume and save. Though both of the problems provide a framework and model of consumer decisions, they are not plausible when applying them to real-life terms, because we have imperfect knowledge. 1.2: The expression given in the question, is the rearranged derivative of the Hicksian demand being equal to the Marshallian demand, when income from the budget constraint is equal to minimised expenditure, whereby m=ep, ÃŽ ¼. This is given by: dDdp= dHdp- dDdm . dedp using m = e. Shephard’s Lemma provides us an alternative way of deriving Hicksian demand functions, using e. It is given by: dedp= x* It is important to note that e is strictly increasing in p, due to Shephard’s Lemma, and x* >0,by assumption. Substituting this into the above expression gives: dDdp= dHdp- dDdm x*  This expression now represents a complete law of demand, as it has combined both Marshallian and Hicksian demand, whereby income from the budget constraint of Marshallian demand, is equal to minimised expenditure of Hicksian demand. Therefore, it has maximised utility and minimised cost simultaneously, to create an optimal quantity of demand in x*. The first term, dDdp, means that Marshallian demand (maximising utility) increases, relative to the price of the good. dHdp represents the Hicksian part of the expression, whereby expenditure is minimised, relative to the price of the good. Question 3: Adverse Selection, Moral Hazard and Insurance 3.1: Insurance markets are needed when risk is present. Risk occurs when there is uncertainty about the state of the world. For example, car drivers do not know if they will crash their car in future, and suffer a loss of wealth – so they would purchase insurance to eliminate this risk of loss, and protect them if they were to ever crash their car. Agents (buyers of insurance) will use insurance markets to transfer their income between different states of the world. This allows insurance markets to trade risk between high-risk and low-risk agents/states. These can be described as Pareto movements. A Pareto improvement is the allocation, or reallocation of resources to make one individual better off, without making another individual worse off. Another term for this is multi-criteria optimisation, where variables and parameters are manipulated to result in an optimal situation, where no further improvements can be made. When the situation occurs that no more improvements can be made , it is Pareto efficient. A condition for efficiency is the least risk-averse agent bears all the risk in an insurance market. If a risk-averse agent bears risk, they would be willing to pay to remove it. A risk-averse agent has a diminishing marginal utility of income; whereby his marginal utility is different across states, if his income is different across states. The agent would give up income in high-income states, in which his marginal utility is low, to have more income in low-income states (e.g. bad state of the world causing a loss of wealth), where his marginal utility would be high. If the insurance market is risk neutral, they will sell insurance to the customer, as long as the payment received is higher than the expected value of pay-outs that the insurer is contracted to give to the customer in different states of the world. Whenever the agent bears some risk, unexploited gains from trade exist. Absence of unexploited gains from trade is a requirement in an efficient insurance market, therefore the situation must arise, whereby the agent’s income is equalised across the states of the world. A risk neutral insurance company can charge a premium to equalise the agent’s income across states of the world, in the best interests of the risk-averse agent. Also, for an insurance market to be  efficient, a tangency condition is implied. The tangency of the indifference curves of a risk-averse agent, and a risk-neutral agent, is where efficiency occurs. At this point, one cannot be made better off, without the other being made worse off (Pareto efficiency). However, an insurance company will never be completely efficient in real life, as information asymmetry exists. The first type of information asymmetry to arise in an insurance market is moral hazard, whereby the actions that an agent may take after signing the contract cannot be observed. This gives the company a trade-off decision between giving full insurance or offering incentives for the agent. Full insurance is first-best in the absence of asymmetric information, when the insurance company is risk-neutral and the agent is risk-averse. However, if the agent is fully insured by the company, they have no reason to prevent a bad state of the world from happening. To solve this problem, the insurance company will not offer full insurance, in order to provide the agent with an incentive to avoid losses. The second type of information asymmetry to occur in an insurance market, is adverse selection. This is when the agent has private information about his risk type and characteristics, and agents in the market are heterogenous. As the insurer doesn’t know which agents are high-risk or low risk, the company will not offer different types of full insurance to match risk-types, as high-risk agents will prefer contracts that are designed for low-risk agents. To solve this, the insurer will offer low-risk agents less insurance – this ensures that high-risk types do not have the incentive to choose a contract for low-risk customers, as they will want more insurance, because they know they will need to claim more. This ensures that the insurance company maintains non-negative profit, as high-risk individuals cost more to insure. However, these solutions carry agency costs, because the result is less efficient than if symmetric information was present. I believe that risk neutrality of an insurance company is a sufficient condition for insurance to take place. Insurance companies are risk-neutral to maximise expected profits, therefore as the principal, will design contracts to achieve this, as well as making certain that the agent picks the desired effort (i.e to prevent a bad state of the world) for that contract, and to make sure that the agent even picks the  contract in the first place. Making sure incentives are compatible, and ensuring participation by the correct risk types, are constraints on maximising expected profits. If an insurance company was risk-averse, without the availability of symmetric information, they cannot differentiate between different risk-types, and therefore would not want to take on the risk of possible high-risk agents buying low-risk contracts. They would charge a higher premium to offset this, which would discourage low-risk customers to sign a contract with the company, as it would not be maximising their own utility. This would lead to a missing market, where trade would be prevented, because other risk-neutral companies would offer better contracts, and they would be able to steal all the low-risk customers. The magnitude of this would depend on the number of low- and high-risk people in the population. This leads me to believe that risk neutrality is also a necessary condition for insurance to take place. 3.2: An insurance company will sell a policy, c, r, if it makes non-negative profits, then:  Ã¢â€ â€™ r-pic ≠¥0,  where c = payout, pi = probability of the loss state, r = premium. Competition in the market drives profit down to zero, therefore r-pic = 0 in equilibrium. For the contract to be at equilibrium, it must satisfy two conditions: the break-even condition, whereby no contract makes negative profits; and absence of unexploited opportunities for profit, because if there was a contract outside of the offered set, with non-negative profit, would mean the offered set is not in equilibrium. If all agents are homogenous, if all agents face the same probability of loss, pi=p, insurance companies would know each buyer’s pi. The firm must maximise each agent’s utility subject to the firm breaking even. This would be at the point of tangency of the agent’s indifference curve and zero-profit constraint. This would be in equilibrium as another profit-making polic y could not be offered. Therefore, as they can observe agent’s risk types, they can offer different policies, to different types: ÃŽ ¸i= ri, ci. It follows that each is offered full and fair insurance. In real life, heterogeneity is usually the case. This is when pi varies with all individuals. Assuming that there are two types: high-risk types, H, and low-risk types, L, where the probability  of loss for H is higher than for L. Individuals know their own probability of loss i=H, L, but insurance companies are unable to observe this. In this case, there are two different kinds of equilibria that insurance companies could opt with: the candidate pooling equilibrium and the candidate separating equilibrium. The pooling equilibrium is where all risk types buy the same policy. In contrary, the separating equilibrium is based on each risk type buying a different policy. In the pooling equilibrium, if both H and L risk-types choose the same policy, the probability of loss is p and the probability of no l oss is 1- p. Therefore, the slope of the ‘aggregate fair-odds line is -1-pp. The pooling contract must lie on this line to be in equilibrium, to ensure the firm breaks even exactly. The contract must also ensure both types want to buy it – it must take both L and H to higher indifference curve than the indifference curve they would be on if they stayed uninsured. Agent L ends up below his fair odds line, and H above his, which means L pays more than expected costs, and H pays less – both pay the fair pooled premium, but H claims on the policy more. So if L prefers to buy the contract, so will H. This leads me to believe both L and H will be able to get full insurance, though it’s not completely fair, as the firm does not need H to choose a different policy to remain breaking even. However, this brings to mind the notion that if full insurance is offered, the agent will not have the incentive to prevent a loss state. Therefore, less insurance will probably be offered, and as both risk types are paying the same premium of the same policy, neither will receive full insurance, as it impossible to differentiate between the two – they will both choose the same policy offered. In the separating equilibrium, one contract would be offered to L, and another to H. Each risk type must prefer the contract designed for that type (i.e. the incentives must be compatible). The contracts offered should give each type the highest possible utility, subject to the firm breaking even. If full insurance contracts were offered to both L and H, where their respective indifference curves are tangent with their respective zero-profit constraints/fair-odds lines, low risk customers would prefer the policy designed for them, but high-risk customers would also prefer the same policy, not the policy designed for them. So they would not both be offered full insurance, as this gives rise to the problem of preventing H from imitating L – low-risk agents are cheaper to insure for the firm (claim less  often) so they get a better rate. Therefore, instead of offering L full insurance, they are offered C, which is still on their fair odds line, but on a lower indifference curve, still ensuring the zero-profit constraint. Now, if the high-risk agents were to choose between the policy designed for them, and C, they will choose the policy designed for them, because they prefer to have more insurance for less money. So, in conclusion, in the separating equilibrium, high-risk (H) customers receive full insurance, and low-risk (L) customers only receive partial insurance – they pay the price to prevent H from imitating them. L is worse off than if there was symmetric information in the market, but no difference to H.