Applications of Game Theory to Actuarial Science

Open Access
Author:
Yang, Fanchen
Area of Honors:
Actuarial Science
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Eli Christopher C Byrne, Thesis Supervisor
  • Ron Gebhardtsbauer, Honors Advisor
Keywords:
  • actuarial science
  • game theory
  • applications
  • hotelling
  • bertrand
  • cournot
  • underwriting
  • life insurance
Abstract:
Insurance pricing is an important part of discussing actuarial science and this topic is a very important part of doing research in this particular field. This paper will show how using game theory methods and models we can create strategies that result in a different perspective in not only pricing, but in various other aspects of actuarial science and the insurance field. First we take a look at different game theory models and concepts to establish the suitability of applying this particular field of mathematics to actuarial science. We then see if our work will result in a difference from actuarial methods, whether that be in premiums or maybe in ratio of accept or reject in life insurance. There are many different fields in actuarial science and the applications of game theory can address problems that apply to all of them.