This paper looks at markets characterized by the fact that the demand side is insured. In these markets, a consumer purchases a good to compensate consequences of unfavorable events, such as an accident or an illness. Insurance policies in most lines of insurance base indemnity on the insured's...

We analyze the role of liability, insurance, and side payments for independent safety controls with unobservable care levels. By independent safety controls we mean that the accident probability depends on the care levels of two parties, and that the effects of the controls on the accident...

We examine the impact of intermediation on insurance market transparency and performance. In a differentiated insurance market under imperfect information, consumers can gain information about product suitability by consulting an intermediary. We analyze current broker compensation methods:...

Das Krankenversicherungssystem in Deutschland ist seit Jahren in der Kritik. Reformbedarf besteht sowohl bei der Gesetzlichen als auch bei der Privaten Krankenversicherung. Ist ein einheitlicher Versicherungsmarkt die Lösung? Peter Oberender und Jürgen Zerth, Universität Bayreuth, sehen in...

This article focuses on the incentive compatibility of existing compensation schemes for the indemnification of costs and losses of animal disease outbreaks in the member states of the EU. It is shown that efficient animal disease risk management basically requires compensation of costs and...

Mehra and Prescott (1985) argued that, according to sensible asset pricing models, stocks should provide at most a 0.35% premium over bills. However, companies use higher equity premia (average around 6%) for evaluating their investment projects, professors use in class and in their textbooks...

We analyze the results of a recent survey of executives and finance professors. We present the required equity premium used in 2008 by 216 companies and 39 professors and their comments. The range of the 216 companies goes from 2% to 30% (average 6.3%) and the range of the 39 academics goes from...

This paper contains 100 questions that students, alumni and other persons (judges, arbitrageurs, clients') have posed to me over the past years. They were recompiled so as to help the reader remember, clarify and, in some cases, discuss some useful concepts in finance. Most of the questions have...

This document has 100 questions from students, alumnae and other persons (judges, clients,...). They are useful to clarify some useful concepts in finance. Most of the questions have a clear answer. The document also has short answers to all questions

During the last 3, 5, 10 and 15 years, the average return of the equity mutual funds in Spain was 600 basis points smaller than the average return of the Spanish Index ITBM. Nevertheless, on December 31, 2006, 348,000 investors in the 120 existing equity mutual funds had 10.7 billion euros. Only...