Monopoly, non-linear pricing, and imperfect information: a reconsideration of the insurance market
Szalay, Dezsö (2008) Monopoly, non-linear pricing, and imperfect information: a reconsideration of the insurance market. Working Paper. University of Warwick, Department of Economics, Coventry.
WRAP_Szalay_twerp_863.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
I reconsider Stiglitz's (1977) problem of monopolistic insurance with a continuum of types. Using a suitable transformation of control variables I obtain an analytical characterization of the optimal insurance policies. Closed form solutions and comparative statics results for special cases are provided.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HG Finance|
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Insurance -- Mathematics, Nonlinear pricing, Risk assessment -- Mathematical models, Competition|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Date:||11 September 2008|
|Number of Pages:||22|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
|References:|| An, M.Y., (1998) "Logconcavity versus Logconvexity:A Complete Characterization", Journal of Economic Theory, 80, 350-369.  Grossman, S. and O. Hart (1983), "An analysis of the principal agent problem", Econometrica, 51 , 7-45.  Laffont, J.-J. and D. Martimort (2002), "The Theory of Incentives", Princeton Univ. Press, Princeton, NJ.  Laffont, J.-J. and J.-C. Rochet, (1998) "Regulation of a Risk Averse Firm", Games and Economic Behavior, 25, 149-173.  Maskin, E. and J. Riley (1984a), "Monopoly with Incomplete Information", Rand Journal of Economics, 15 , 171-196.  Maskin, E. and J. Riley (1984b), "Optimal Auctions with Risk Averse Buyers", Econometrica, 52, 1473-1518.  Matthews, S.A. (1983), "Selling to risk averse buyers", Journal of Economic Theory 30, 370-400.  Mirrlees, J. (1971) "An Exploration in the Theory of Optimum Income Taxation", Review of Economic Studies 38, 175-208.  Mussa, M. and S. Rosen (1978), "Monopoly and Product Quality", Journal of Economic Theory 18, 301-317.  Salanié, B. (1990), "Sélection Adverse et Aversion pour le Risque", Ann. Econ. Statist. 18, 131-150.  Stiglitz, J. (1977), "Monopoly, Nonlinear Pricing, and Imperfect Information: the Insurance Market", Review of Economic Studies 4, 407-430.|
Actions (login required)