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Insurance in a market for credence goods

Sülzle, Kai; Wambach, Achim - 2002

We study the impact of insurance on the amount of fraud in a physician-patient relationship. In a market for credence …

Persistent link: https://www.econbiz.de/10011409200

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/10013093046

Self-confidence and strategic behavior

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

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

Persistent link: https://www.econbiz.de/10010223063

Nitpicky insurers and the law of contracts

Bourgeon, Jean-Marc; Picard, Pierre M. - 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/10011723471

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/10013285520

Income tax buyouts and income tax evasion

Goerke, Laszlo - 2014

A tax buyout is a contract between tax authorities and a tax payer which reduces the marginal income tax rate in exchange for a lump-sum payment. While previous contributions have focussed on labour supply, we consider the interaction with tax evasion and show that a buyout can increase expected...

Persistent link: https://www.econbiz.de/10010237195

Second-degree moral hazard in a real-world credence goods market

Balafoutas, Loukas; Kerschbamer, Rudolf; Sutter, Matthias - 2013 - This version: 16 October 2013

Empirical literature on moral hazard focuses exclusively on the direct impact of asymmetric information on market outcomes, thus ignoring possible repercussions. We present a field experiment in which we consider a phenomenon that we call second-degree moral hazard – the tendency of the supply...

Persistent link: https://www.econbiz.de/10010199693

Corporate taxation and financial strategies under asymmetric information

Cohen, Francesco; Fedele, Alessandro; Panteghini, Paolo - 2014

In this article we study the corporate tax effects on credit market equilibria. In particular, we develop a model that accounts for five pieces of evidence: i) the existence of a tax incentive to borrow, ii) the negative relationship between leverage and profitability, iii) the existence of...

Persistent link: https://www.econbiz.de/10010347029

Efficiency, welfare, and political competition

Bierbrauer, Felix; Boyer, Pierre C. - 2014

We study political competition in an environment in which voters have private information about their preferences. Our framework covers models of income taxation, public-goods provision or publicly provided private goods. Politicians are vote-share-maximizers. They can propose any policy that is...

Persistent link: https://www.econbiz.de/10010358277

When ignorance is bliss : information asymmetries enhance prosocial behavior in dictator games

Winschel, Evguenia; Zahn, Philipp - 2014

In most laboratory experiments concerning prosocial behavior subjects are fully informed how their decision influences the payoff of other players. Outside the laboratory, however, individuals typically have to decide without such detailed knowledge. To assess the effect of information...

Persistent link: https://www.econbiz.de/10010342476