markets with small initial loss sizes, insurers may try to raise these in order to create demand for insurance. After having … defined insurance and non-insurance markets based on the initial loss size, we develop theory to show that insurers with buyer … power have incentives to create insurance markets. Insurer competition will push their profits to zero but markets do not …

We formally link insurance markets with product markets and identify a demand effect of insurance: if risk …-averse consumers can buy insurance against possible product failure, there will be some additional consumers that buy the product … have a higher willingness to pay if they can also buy insurance. But a higher price causes those consumers to leave the …

We consider the efficiency of Cournot and Bertrand equilibria in a duopoly with substitutable goods where firms invest …