The car-insurance market is plagued with problems of adverse selection and moral hazard. In-vehicle data recorders can collect massive amount of information about the drivers' driving behaviors and risk factors. This monitoring technology allows the firm to charge a premium based on the...

This paper develops a dynamic model to examine how a firm selling new non-durable experience goods can signal its high quality with dynamic spot-pricing or price commitment. Since consumers who buy and use the product will learn its quality, the firm's early-period price will endogenously...