This paper investigates explanation investments in a vertically differentiated insurance market. Our main findings reveal that cooperative explanation investment cannot be voluntarily realized because a high-quality insurance firm wishes to deviate from cooperative explanation investment;...

Purpose – The purpose of this paper is to discuss whether insurers could have a strong motivation for M&A in the future because they need to survive within the industry under oversaturated market conditions. Recently, Japanese non-life insurance markets, mainly the automobile insurance market,...