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Insurance in vertically differentiated repair markets

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  • Urmann, Oliver
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    Abstract

    In vertically differentiated repair markets with insured customers, insurance coverage increases price level, entry, and the high quality provider’s profits. In the market for pharmaceuticals, this should be taken into account when calculating the extent of patent periods.

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    Bibliographic Info

    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 116 (2012)
    Issue (Month): 1 ()
    Pages: 121-123

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    Handle: RePEc:eee:ecolet:v:116:y:2012:i:1:p:121-123

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    Web page: http://www.elsevier.com/locate/ecolet

    Related research

    Keywords: Insurance; Repair markets; Vertical differentiation;

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    References

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    1. Bouckaert, J.M.C., 1995. "Monopolistic competition with a mail order business," Discussion Paper 1995-62, Tilburg University, Center for Economic Research.
    2. Noah Gans, 2002. "Customer Loyalty and Supplier Quality Competition," Management Science, INFORMS, vol. 48(2), pages 207-221, February.
    3. Madden Paul & Pezzino Mario, 2011. "Oligopoly on a Salop Circle with Centre," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-30, January.
    4. Nina Pavcnik, 2002. "Do Pharmaceutical Prices Respond to Potential Patient Out-of-Pocket Expenses?," RAND Journal of Economics, The RAND Corporation, vol. 33(3), pages 469-487, Autumn.
    5. Martin Nell & Andreas Richter & Jörg Schiller, 2005. "When prices hardly matter: Incomplete insurance contracts and markets for repair goods," Risk and Insurance 0501002, EconWPA.
    6. Riordan, Michael H, 1986. "Monopolistic Competition with Experience Goods," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 265-79, May.
    7. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
    8. Amy Finkelstein, 2007. "The Aggregate Effects of Health Insurance: Evidence from the Introduction of Medicare," The Quarterly Journal of Economics, MIT Press, vol. 122(1), pages 1-37, 02.
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