全球智库信息集成服务系统(G2TT): DP16310 Risk Classification in Insurance Markets with Risk and Preference Heterogeneity

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP16310
	DP16310 Risk Classification in Insurance Markets with Risk and Preference Heterogeneity
	Vitor Farinha Luz; Piero Gottardi; Humberto Moreira
发表日期	2021-06-29
出版年	2021
语种	英语
摘要	This paper studies a competitive model of insurance markets in which consumers are privately informed about their risk and risk preferences. We provide a tractable characterization of equilibria, which depend non-trivially on consumers' type distribution, a desirable feature for policy analysis. The use of consumer characteristics for risk classification is modeled as the disclosure of a public informative signal. A novel monotonicity property of signals is shown to be necessary and sufficient for their release to be welfare improving for almost all consumer types. We also study the effect of changes to the risk distribution in the population as the result of demographic changes or policy interventions. When considering the monotone likelihood ratio ordering of distributions, an increase in the risk distribution leads to lower utility for almost all consumer types. In contrast, the effect is ambiguous when considering the first order stochastic dominance ordering.
主题	Financial Economics ; Organizational Economics ; Public Economics
关键词	Risk classification Insurance markets Risk distribution Multidimensional private information
URL	https://cepr.org/publications/dp16310
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/545275
推荐引用方式 GB/T 7714	Vitor Farinha Luz,Piero Gottardi,Humberto Moreira. DP16310 Risk Classification in Insurance Markets with Risk and Preference Heterogeneity. 2021.