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On the Use of Information in Repeated Insurance Markets

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  • Kesternich, Iris
  • Schumacher, Heiner

Abstract

We analyze the use of information in a repeated oligopolistic insurance market. To sustain collusion, insurance companies might refrain from changing their pricing schedules even if new information about risks becomes available. We therefore provide an explanation for the existence of "unused observables" that is information which

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Bibliographic Info

Paper provided by Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems with number 280.

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Date of creation: Oct 2009
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Handle: RePEc:trf:wpaper:280

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Keywords: repeated games; insurance markets; oligopoly; unused observables;

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References

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  1. Ray Rees & Ekkehard Kessner, 1999. "Regulation and efficiency in European insurance markets," Economic Policy, CEPR & CES & MSH, vol. 14(29), pages 363-398, October.
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  12. Ray Rees & Patricia Apps, 2006. "Genetic testing, income distribution and insurance markets, CHERE Working Paper 2006/3," Working Papers 2006/3, CHERE, University of Technology, Sydney.
  13. John Cawley & Tomas Philipson, 1997. "An Empirical Examination of Information Barriers to Trade inInsurance," University of Chicago - George G. Stigler Center for Study of Economy and State 132, Chicago - Center for Study of Economy and State.
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  23. repec:fth:guelph:1993-10 is not listed on IDEAS
  24. Rees, R., 1993. "Tacit Collusion," Working Papers 1993-10, University of Guelph, Department of Economics and Finance.
  25. Rothschild, Michael & Stiglitz, Joseph E, 1976. "Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information," The Quarterly Journal of Economics, MIT Press, vol. 90(4), pages 630-49, November.
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Cited by:
  1. Federico Etro, 2010. "Endogenous market structures and antitrust policy," International Review of Economics, Springer, vol. 57(1), pages 9-45, March.
  2. Wuppermann, Amelie Catherine, 2011. "Empirical Essays in Health and Education Economics," Munich Dissertations in Economics 13187, University of Munich, Department of Economics.

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