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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 … our theory and find support. Monopolistic insurer-subjects in non-insurance markets increase loss sizes to establish …
Persistent link: https://www.econbiz.de/10011456744
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 … our theory and find support. Monopolistic insurer-subjects in non-insurance markets increase loss sizes to establish …
Persistent link: https://www.econbiz.de/10012936210
We provide an experimental analysis of competitive insurance markets with adverse selection. Our parameterized version of the lemons' model (Akerlof 1970) in the insurance context predicts total crowding out of low-risks when insurers offer a single full insurance contract. The therapy proposed...
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The purpose of this paper is to empirically test the association of behavioral biases like overconfidence bias and self-attribution bias, and information acquisition with individual investors decisions. This study also extends its contributions in understanding the role of information...
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