Arbeitspapier

When prices hardly matter: Incomplete insurance contracts and markets for repair goods

This paper locks at markets charaterized by the fact that the demand side is insured. In these markets a consumer purchases a good to compensate consequences of unfavorable events, such as an accident or an illness. Insurance policies in most lines of insurance base indemnity on the insured's actual expenses, i. e., the insured would be partially or completely reimbursed when purchased certain goods. In this setting we discuss the interaction between insurance and repair markets by focusing, on the one hand, upon on development of prices and the market structure in markets with insured customers, and, on the other hand, the resulting backlash on optimal insurance contracting.

Language
Englisch

Bibliographic citation
Series: Working Papers on Risk and Insurance ; No. 14

Classification
Wirtschaft
Noncooperative Games
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Insurance; Insurance Companies; Actuarial Studies
Subject
insurance
incomplete contracts
repair markets

Event
Geistige Schöpfung
(who)
Nell, Martin
Richter, Andreas
Schiller, Jörg
Event
Veröffentlichung
(who)
Hamburg University, Institute for Risk and Insurance
(where)
Hamburg
(when)
2005

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Nell, Martin
  • Richter, Andreas
  • Schiller, Jörg
  • Hamburg University, Institute for Risk and Insurance

Time of origin

  • 2005

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