Competitive Failures in Insurance Markets: Theory and Policy Implications

Overview

Risk sharing is a cornerstone of modern economies. It is valuable to risk-averse consumers and essential for investment and entrepreneurs. The standard economic model of risk exchange predicts that competition in insurance markets will result in all individual risks being insured--that all diversifiable risks in the economy will be covered through mutual risk-sharing arrangements--but in practice this is not the case. Many diversifiable risks are still borne by individuals; many environmental, catastrophic, and ...

See more details below
Hardcover
$38.83
BN.com price
(Save 13%)$45.00 List Price
Other sellers (Hardcover)
  • All (26) from $2.00   
  • New (11) from $3.98   
  • Used (15) from $2.00   
Sending request ...

Overview

Risk sharing is a cornerstone of modern economies. It is valuable to risk-averse consumers and essential for investment and entrepreneurs. The standard economic model of risk exchange predicts that competition in insurance markets will result in all individual risks being insured--that all diversifiable risks in the economy will be covered through mutual risk-sharing arrangements--but in practice this is not the case. Many diversifiable risks are still borne by individuals; many environmental, catastrophic, and technological risks are not covered by insurance contracts. In this CESifo volume, leading international economists provide new insights on recent developments in the economic analysis of the limits of insurability. They find that asymmetric information is a central reason why competition in insurance markets may fail to guarantee that mutually advantageous risk exchanges are realized in today's economies. In particular, adverse selection and moral hazard help explain why competitive insurance markets fail to provide an efficient level of insurance and hence why public intervention is required to solve the problem. The contributors offer theoretical models of insurance markets involving adverse selection as well as empirical analyses of health insurance and non-health insurance markets in countries including
Australia, Sweden, Switzerland, and the United States.Contributors:Luis H. B. Braido, Mark J.
Browne, Pierre-André Chiappori, Georges Dionne, Irena Dushi, Roland Eisen, Lucien Gardiol,
Pierre-Yves Geoffard, Christian Gouriéroux, Chantal Grandchamp, Erik Grönqvist, Luigi Guiso, Paul
Kofman, Hansjörg Lehmann, Gregory P. Nini

The MIT Press

Read More Show Less

Product Details

  • ISBN-13: 9780262033527
  • Publisher: MIT Press
  • Publication date: 7/1/2006
  • Series: CESifo Seminar Series
  • Pages: 344
  • Product dimensions: 6.00 (w) x 9.00 (h) x 1.00 (d)

Meet the Author

Pierre-André Chiappori is Professor of Economics at Columbia University.

Christian Gollier is Professor of Economics at the University of Toulouse.

Read More Show Less

Table of Contents

1 Time, risk, precommitment, and adverse selection in competitive insurance markets 11
2 Adverse selection in the health insurance market after genetic tests 33
3 The welfare effects of predictive medicine 55
4 Selection and incentive effects : an econometric study of Swiss health-insurance claims data 81
5 Adverse selection in the long-term care insurance market 97
6 Choice of managed care and cost savings : the role of latent health status 113
7 Information updating and insurance dropout : evidence from dental insurance 135
8 Informational content of household decisions with applications to insurance under asymmetric information 159
9 Rethinking the sources of adverse selection in the annuity market 185
10 The role of risk aversion in predicting individual behavior 213
11 Insurance and incentives in sharecropping 251
12 Asymmetric learning in insurance markets 283
Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star

(0)

4 Star

(0)

3 Star

(0)

2 Star

(0)

1 Star

(0)

Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation

Reminder:

  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

 
Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)