Showing 1 - 10 of 2,167
This paper studies a market for a medical product in which there is perfect competition among health insurers, while the good is sold by a monopolist. Individuals differ in their severity of illness and there is ex post moral hazard. We consider two regimes: one in which insurers use coinsurance...
Persistent link: https://www.econbiz.de/10013221173
Advantageous (or propitious) selection occurs when an increase in the premium of an insurance contract induces high … insurance demand are high. We then move to standard settings satisfying the single-crossing property and show that advantageous … face two mutually exclusive risks that are bundled together in a single insurance contract. We exemplify this last case …
Persistent link: https://www.econbiz.de/10014083046
Information asymmetries can prevent markets from operating efficiently. An important example is the labor market, where employers face uncertainty about the productivity of job candidates. We examine theoretically and with laboratory experiments three key questions related to hiring via...
Persistent link: https://www.econbiz.de/10012871752
We consider a principal-agent relationship with adverse selection. Principals pay informational rents due to asymmetric information and sell their output in a homogeneous Cournot-oligopoly. We find that asymmetric information may mitigate or more than compensate the welfare reducing impact of...
Persistent link: https://www.econbiz.de/10014243167
uncertainty decreases the rate of efficient service provision and leads to less trade. In theory, insurance also decreases the … that considers both diagnostic uncertainty of sellers and the effects of insurance coverage of consumers in a unified … framework. We test the model’s predictions in a laboratory experiment. Both in theory and in the experiment diagnostic …
Persistent link: https://www.econbiz.de/10013314966
. We uncover a trade-off between stimulus and insurance, as high-debt individuals gain considerably from transfers, but …
Persistent link: https://www.econbiz.de/10014347832
formal insurance in a setting where donors make redistributive transfers to anonymously paired recipients. We find that … donors reduce their transfers to recipients who don’t take-up insurance, and that this effect is larger for donors who hold … the ex ante belief that the recipient is more likely to take-up insurance. The findings are consistent with a model of a …
Persistent link: https://www.econbiz.de/10012871747
Insurance for natural hazards - earthquakes, hurricanes, or pandemics - is rarely comprehensively adopted without …. Efforts to close this insurance gap include the introduction of parametric (index) insurance products for various catastrophic … risks. We compare parametric to indemnity insurance in a simple model where the insurance company has superior information …
Persistent link: https://www.econbiz.de/10013296268
People often fail to insure against catastrophes, even when insurance is subsidized. Even when insuring homes, many … homeowners still underinsure the full value of their assets. Some researchers have suggested using long-term insurance contracts … to reduce these insurance gaps. We examine insurance decisions in a computer-administered experiment that makes several …
Persistent link: https://www.econbiz.de/10013312079
We consider a competitive insurance market with adverse selection. Unlike the standard models, we assume that … limited liability afforded via bankruptcy laws. Government assistance is calculated ex post of any insurance benefits. This … alters the individuals? demand for insurance coverage. In turn, this affects equilibria in various insurance models of …
Persistent link: https://www.econbiz.de/10010261214