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We study the impact of insurance on the amount of fraud in a physician-patient relationship. In a market for credence goods, where prices are regulated by an authority, physicians act as experts. Due to their informational advantage, physicians have an incentive to cheat by inducing...
Persistent link: https://www.econbiz.de/10011409200
We study the impact of insurance on the amount of fraud in a physician-patient relationship. In a market for credence goods, where prices are regulated by an authority, physicians act as experts. Due to their informational advantage, physicians have an incentive to cheat by inducing...
Persistent link: https://www.econbiz.de/10013320607
This article aims at making a bridge between the theory of optimal auditing and current procedures applied to audit … auditing strategy takes the form of a quot;Red Flags Strategyquot; which consists in referring claims to a Special … Investigation Unit (SIU) when certain fraud indicators are observed. Fraud indicators are classified based on the degree to which …
Persistent link: https://www.econbiz.de/10012739467
An important incentive problem for the design of unemployment insurance is the fraudulent collection of unemployment benefits by workers who are gainfully employed. We show how to efficiently use a combination of tax/subsidy and monitoring to prevent such fraud. The optimal policy monitors the...
Persistent link: https://www.econbiz.de/10013065786
Audit mechanisms frequently take place in the context of repeated relationships between auditor and auditee. This paper focuses attention on the insurance fraud problem in a setting where insurers repeatedly verify claims satisfied by service providers (e.g., affiliated car repairers or members...
Persistent link: https://www.econbiz.de/10011811555
Persistent link: https://www.econbiz.de/10011773614
Persistent link: https://www.econbiz.de/10000908236
We examine how long-term life insurance contracts can be designed to incorporate uncertain future bequest needs. An individual who buys a life insurance contract early in life is often uncertain about the future financial needs of his or her family, in the event of an untimely death. Ideally,...
Persistent link: https://www.econbiz.de/10003805992
The paper provides novel insights on the effect of a firm’s risk management objective on the optimal design of risk transfer instruments. I analyze the interrelation between the structure of the optimal insurance contract and the firm's objective to minimize the required equity it has to hold...
Persistent link: https://www.econbiz.de/10003864039
Insurance intermediation services are information services which exhibit strong information asymmetries. We empirically analyze whether signaling works in the German market for insurance intermediation services. For this a signal must increase service quality and be easily identifiable by...
Persistent link: https://www.econbiz.de/10003886031