Showing 1 - 10 of 3,446
We examine insurance markets with two types of customers: those who regret suboptimal decisions and those who don.t. In … positive correlation between the amount of insurance coverage and risk type, as in the standard economic models of adverse … selection, but there also exist separating equilibria that predict a negative correlation between the amount of insurance …
Persistent link: https://www.econbiz.de/10010303737
We take a dynamic perspective on insurance markets under adverseselection and study a generalized Rothschildand … dynamic contracts. An unconditional dynamiccontract has insurance companies offeringcontracts where the terms of the contract … on individualpast performance (like in car insurances). Weinvestigate whether allowing insurance companies to offer …
Persistent link: https://www.econbiz.de/10010324841
A central theme in the international debate on genetic testing concerns the extent to which insurance companies should … be allowed to use genetic information in their design of insurance contracts. We analyze this issue within a model with …
Persistent link: https://www.econbiz.de/10010284417
-select into more competitive environments (e.g. Dohmen and Falk, 2006). In particular, it shows that moderate overconfidence in a …
Persistent link: https://www.econbiz.de/10010277216
We develop a simple model that describes individuals’ self-assessments oftheir abilities. We assume that individuals learn about their abilities from appraisalsof others and experience. Our model predicts that if communicationis imperfect, then (i) appraisals of others tend to be too positive,...
Persistent link: https://www.econbiz.de/10010325242
We examine factors that may contribute to 'overconfidence' in relative ability on an intelligence test. We test … an equilibrium strategy, providing a rationale for strategic overconfidence. …
Persistent link: https://www.econbiz.de/10010326528
salient perturbations, we propose a strategic foundation of overconfidence. Since overconfident statements are used in …
Persistent link: https://www.econbiz.de/10010328716
We extend Akerlof (1970)'s 'Market for Lemons' by assuming that some buyers are overconfident. Buyers in our model receive a noisy signal about the quality of the good that is on display for sale. Overconfident buyers do not update according to Bayes' rule but take the noisy signal at face...
Persistent link: https://www.econbiz.de/10010333856
overconfidence and overentry into competition. In a broader context, the results provide an explanation for the overconfidence of …
Persistent link: https://www.econbiz.de/10010396967
overconfidence and overentry into competition. In a broader context, the results provide an explanation for the overconfidence of …
Persistent link: https://www.econbiz.de/10010397879