Contract-relevant information asymmetries are known to cause inefficien-cies in markets. The information asymmetry is largest in the beginning of the customer-insurer relationship but reduces over time; the longer a poli-cyholder stays with the insurer the more the insurer learns about the...

Risky driving behavior is regarded as being one of the best predictors of traffic accidents. Traffic violations certainly signal risky driving behvior, but the analysis of the linkage of traffic violations, individual and vehicle characteristics and annual mileage has so far been hampered by the...

This paper shows that more intense competition may improve, rather than hamper, the chances that a market for an experience good or service overcomes the problems caused by informational asymmetries. This, in spite of the fact that intensified competition diminishes the reputational rents that...