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Overconfidence in the markets for lemons
Herweg, Fabian; Müller, Daniel - 2013
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/10010342215
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The use of the principle of sharing and mutuality in covering risks (in the modern world)
Łyskawa, Krzysztof; Janowicz-Lomott, Marietta - In: International journal of business and economic sciences … 15 (2022) 2, pp. 1-15
transmission of this information will not cause any concern. Such a form of insurance is based on the principle of mutuality …. Research limitations/implications: Mutuality-based insurance is therefore a path based on solutions of the past (primary forms … of insurance), but at the same time is seen as a response to the lack of adaptation of insurance products to the actual …
Persistent link: https://www.econbiz.de/10013489498
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Norms, incentives and information in income insurance
Lindbeck, Assar; Persson, Mats - 2015
In this paper, we ask under what conditions norms can enhance welfare by mitigating moral hazard in income insurance … social norms and internalized norms. We study how optimal insurance arrangements, the behavior of insured individuals, and …
Persistent link: https://www.econbiz.de/10010482983
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Insurance and Inequality with Persistent Private Information
Bloedel, Alexander W. - 2019
We study optimal insurance contracts for an agent with Markovian private information. Our main results characterize the …
Persistent link: https://www.econbiz.de/10012897939
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Insurance and Inequality with Persistent Private Information
Bloedel, Alexander W. - 2018
We study optimal insurance contracts for an agent with Markovian private information. Our main results characterize the …
Persistent link: https://www.econbiz.de/10012931503
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Overconfidence in the market for lemons
Herweg, Fabian; Müller, Daniel - 2011
We extend Akerlof's (1970) "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 at 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/10009375745
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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
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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/10010193289
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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
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Second-degree moral hazard in a real-world credence goods market
Balafoutas, Loukas; Kerschbamer, Rudolf; Sutter, Matthias - 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/10010207314