Public versus private insurance system ...
Document type :
Article dans une revue scientifique
Title :
Public versus private insurance system with (and without) transaction costs: optimal segmentation policy of an informed monopolist
Author(s) :
Journal title :
Applied Economics
Pages :
1907-1928
Publisher :
Taylor & Francis (Routledge)
Publication date :
2018-10-13
ISSN :
0003-6846
English keyword(s) :
Insurance
direct segmentation
transaction costs
social welfare
direct segmentation
transaction costs
social welfare
HAL domain(s) :
Sciences de l'Homme et Société
Sciences de l'Homme et Société/Economies et finances
Sciences de l'Homme et Société/Economies et finances
English abstract : [en]
Computer-mediated transactions allow insurance companies to customize their contracts, while transaction costs limit this tendency toward customization. To capture this phenomenon, we develop a complete-information framework ...
Show more >Computer-mediated transactions allow insurance companies to customize their contracts, while transaction costs limit this tendency toward customization. To capture this phenomenon, we develop a complete-information framework in which it is costly to design a new market segment when the segmentation policy (number and design of segments) is endogenously chosen. Both the case of a private and a public insurer are considered. Without transaction costs, these two insurance systems are equivalent in terms of social welfare and participation. With transaction costs, this equivalence is no longer present, and the analysis of this difference is the subject of this article.Show less >
Show more >Computer-mediated transactions allow insurance companies to customize their contracts, while transaction costs limit this tendency toward customization. To capture this phenomenon, we develop a complete-information framework in which it is costly to design a new market segment when the segmentation policy (number and design of segments) is endogenously chosen. Both the case of a private and a public insurer are considered. Without transaction costs, these two insurance systems are equivalent in terms of social welfare and participation. With transaction costs, this equivalence is no longer present, and the analysis of this difference is the subject of this article.Show less >
Language :
Anglais
Peer reviewed article :
Oui
Audience :
Internationale
Popular science :
Non
Collections :
Source :