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Charness, Gary; Rustichini, Aldo; van de Ven, Jeroen - 2013

salient perturbations, we propose a strategic foundation of overconfidence. Since overconfident statements are used in …

Persistent link: https://www.econbiz.de/10010328716

Adverse selection in an insurance market with government-guaranteed subsistence levels

Kim, Bum J.; Schlesinger, Harris - 2004

We consider a competitive insurance market with adverse selection. Unlike the standard models, we assume that … limited liability afforded via bankruptcy laws. Government assistance is calculated ex post of any insurance benefits. This … alters the individuals? demand for insurance coverage. In turn, this affects equilibria in various insurance models of …

Persistent link: https://www.econbiz.de/10010261214

Nitpicky Insurers and the Law of Contracts

Bourgeon, Jean-Marc; Picard, Pierre - 2017

that hardly explains the many features of an insurance contract. We extend this setup to include the situation that the … show how the law of insurance contracts should allow insurers to incentivize policyholders to exert an adequate level of …

Persistent link: https://www.econbiz.de/10011744975

Insurance for Catastrophes - Indemnity vs. Parametric Insurance with Imperfect Information

Feess, Eberhard; Jordan, Cathrin; Noy, Ilan - 2022

Insurance for natural hazards - earthquakes, hurricanes, or pandemics - is rarely comprehensively adopted without …. Efforts to close this insurance gap include the introduction of parametric (index) insurance products for various catastrophic … risks. We compare parametric to indemnity insurance in a simple model where the insurance company has superior information …

Persistent link: https://www.econbiz.de/10013296268

The End of Tourist Traps: A Natural Experiment on the Impact of Tripadvisor on Quality Upgrading

Donati, Dante - 2022

Asymmetric information can distort market outcomes. I study how the online disclosure of information affects consumers' behavior and firms' incentives to upgrade product quality in markets where information is traditionally limited. I first build a model of consumer search with firms' endogenous...

Persistent link: https://www.econbiz.de/10013353446

Designing benefit rules for flexible retirement with or without redistribution

Simonovits, András - 2004

The traditional approach to flexible retirement (e.g. NDC) neglects the impact of asymmetric information on actuarial fairness (neutrality). The mechanism design approach (e.g. Diamond, 2003) gives up the requirement of neutrality and looks for a redistributive second-best benefit-retirement-age...

Persistent link: https://www.econbiz.de/10010261115

Vertical product differentiation when quality is unobservable to buyers

Orosel, Gerhard O.; Zauner, Klaus G. - 2004

We analyze vertical product differentiation in a model where a good's quality is unobservable to buyers before purchase, a continuum of quality levels is technologically feasible, and minimum quality is supplied under competitive conditions. After purchase the true quality of the good is...

Persistent link: https://www.econbiz.de/10010261256

Market power and information revelation in dynamic trading

Gottardi, Piero; Serrano, Roberto - 2004

We study a strategic model of dynamic trading where agents are asymmetrically informed over common value sources of uncertainty. There is a continuum of buyers and a finite number n of sellers. All buyers are uninformed, while at least one seller is privately informed about the true state of the...

Persistent link: https://www.econbiz.de/10010261280

Interregional redistribution and budget institutions under asymmetric information

Huber, Bernd; Runkel, Marco - 2005

Empirical evidence from the U.S. and the European Union suggests that regions which contribute to interregional redistribution face weaker borrowing constraints than regions which benefit from interregional redistribution. This paper presents an argument in favor of such differentiated budgetary...

Persistent link: https://www.econbiz.de/10010261294

Sharing budgetary austerity under free mobility and asymmetric information : an optimal regulation approach to fiscal federalism

Breuille, Marie-Laure; Gary-Bobo, Robert J. - 2005

In the present article, Tiebout meets Laffont and Tirole in the land of Fiscal Federalism. We use a non-trivial Principal-Multi-Agent model to characterize the optimal intergovernmental grant schedule, when the cost of local public goods depends on hidden characteristics and actions of local...

Persistent link: https://www.econbiz.de/10010261345