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We analyze the effect of ambiguous loss probabilities on competitive insurance markets with asymmetric information. We characterize equilibria under actuarially fair pricing with preferences that are second-order ambiguity averse (have smooth indifference curves). We also show existence of...
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The article shows that heterogeneous incomplete private information can explain the limited existence of guaranteed renewable health insurance (GR) contracts in an otherwise frictionless markets. We derive a unique equilibrium that can be of the form that either only a portion of the population...
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Dieses Buch gibt Studierenden der Wirtschaftswissenschaften sowie Praktikern aus der Versicherungswirtschaft eine … Versicherungswissenschaft. Professor Dr. Martin Nell† war geschäftsführender Direktor des Instituts für Versicherungsbetriebslehre der … München. Professor Dr. Jörg Schiller ist Inhaber des Lehrstuhls für Versicherungswirtschaft und Sozialsysteme an der …
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This article addresses the role of independent insurance intermediaries in markets where matching is important. We compare fee-based and commission-based compensation systems and show that they are payoff equivalent if the intermediary is completely honest. Allowing for strategic behavior, we...
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