Co‑opetition in Reinsurance Markets: When Pareto Meets Stackelberg and Nash
This paper introduces "co‑opetition" (combining competition and cooperation) to reinsurance risk‑sharing. A two‑layer game‑theoretic framework models insurer‑reinsurer contracting and price competition (Stackelberg‑Nash), followed by collaborative risk‑sharing. The model, using mean‑variance preferences, yields explicit equilibrium results, demonstrating the feasibility of analyzing complex reinsurance market dynamics. Future research could explore different preferences, premium principles, and market structures.