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Persistent link: https://www.econbiz.de/10003388532
Disclosure of private medical information allows insurance companies to better predict medical expenditures. The premiums the companies charge the insured employees reflect these expenditures. This paper studies incentives of employees to disclose their medical information. I find that healthier...
Persistent link: https://www.econbiz.de/10009718223
We study the consequences of imposing a minimum coverage in an insurance market where enrollment is mandatory and agents have private information on their true risk type. If the regulation is not too stringent, the equilibrium is separating in which a single insurer monopolizes the high risks...
Persistent link: https://www.econbiz.de/10011311740
Persistent link: https://www.econbiz.de/10012253190
When health plans compete under adverse selection, the competitive equilibrium set of contracts is unique. However, the allocation of these contracts among health plans is undetermined. We show that three health plans suffice to sustain an equilibrium where each health plan offers a single...
Persistent link: https://www.econbiz.de/10009355904
asymmetric learning hypothesis that repeated contracting enables sellers to obtain an informational advantage over their rivals …
Persistent link: https://www.econbiz.de/10011010011
The value of information regarding risk class for a monopoly insurer and its customers is examined in both symmetric and asymmetric information environments. A monopolist always prefers contracting with uninformed customers as this maximizes the rent extracted under symmetric information while...
Persistent link: https://www.econbiz.de/10011300312
Learning is crucial to organizational decision making but often needs to be delegated. We examine a dynamic delegation … the principal, privately learns the profitability over time and communicates to the principal. We formulate learning … delegation as a dynamic mechanism design problem and characterize the optimal delegation scheme. We show that private learning …
Persistent link: https://www.econbiz.de/10012587421
This paper analyses possible options how to improve the risk adjustment of the health insurance system in the Czech Republic. From the possible options it argues for including pharmaceutical cost groups (PCGs) as additional risk factors since it is an improvement that can be implemented almost...
Persistent link: https://www.econbiz.de/10008685245
Using the self-stated degree of risk aversion regarding health from the GSOEP we find some evidence for risk aversion being a source of advantageous selection. Risk averse men more often procure supplementary insurance for hospital visits despite needing the additional coverage less.
Persistent link: https://www.econbiz.de/10010572197