Hofmann, Annette; Nell, Martin; Pohl, Philipp - In: Journal of Insurance Issues 32 (2009) 2, pp. 133-153
The paper analyzes a monopolistic insurer’s pricing strategies when potential customers differ in risk aversion and their type cannot be observed by the insurer. Our model builds on Schlesinger (1983), who derived optimal nonlinear pricing strategies for competitive and monopolistic insurance...