Fig. 2

Panel (a) shows a non-cooperative game over MC-insured. Big dots represent the reaction function N _{M C,S} (N _{M C,D} ), the dashed line, N _{S H I,M C} (N _{M C,D} ), and small dots, N _{M C,D} (N _{M C,S} ). The solid line represents the overall number of MC-insured given by N _{M C,S} +N _{S H I,M C} . Panel (b) shows the cooperative bargaining space \(\mathcal {V}\) (shaded area) with its Pareto frontier \(\bar {\mathcal {V}}_{P}\) (solid). The threat point d is marked with a solid square