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We develop a parsimonious model to study the effect of regulations aimed at reducing counterparty risk on the structure of over-the-counter securities markets. We find that such regulations promote entry of dealers, thus fostering competition and lowering spreads. Greater competition, however,...
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often negotiate a settlement to avoid a costly trial. Liability insurance creates bargaining leverage for the defendant in … is a substantial source of value for insurance. Our results show that under adverse selection, a monopolist offers at … competitive market, only a pooling equilibrium with under-insurance may exist …
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First-year insurer participation in the Health Insurance Marketplaces (HIMs) established by the Affordable Care Act is … insurance market), we study the impact of competition on premiums. We exploit variation in ratings-area-level competition … participated. If all insurers active in each state's individual insurance market in 2011 had participated in all ratings areas in …
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