| Author: | Cooper, R. Hayes, B. |
| Title: | Multi-period insurance contracts. |
| Journal: | International Journal of Industrial Organization
1987 : JUN, VOL. 5:2, p. 211-231 |
| Index terms: | INSURANCE |
| Language: | eng |
| Abstract: | An examination of the form of insurance contracts in the presence of asymmetric information about consumers accident probabilities, to understand the adjustment in contract terms as a function of accident histories in a finite horizon model. The adjustments between alternative market structures is compared. The authors opine that the findings indicate that history dependent on insurance contracts have a useful sorting role, and low risk individuals face adverse contractural terms if they subsequently have accidents. The adjustments are stronger for a single insurance seller, but are also present in the competitive model. Nearly forty equations and four Figures are given. |
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