IDEAS home Printed from https://ideas.repec.org/a/rje/bellje/v14y1983iautumnp489-496.html
   My bibliography  Save this article

Provider Insurance

Author

Listed:
  • Michael Manove

Abstract

Provider insurance is insurance offered by the provider of a product or service against losses or damages incurred in connection with the use of that product or service. It is demonstrated that a rate-setting agency, with no information about consumers, can design a provider-insurance mechanism that induces both the provider and the consumer to reduce losses efficiently, and, at the same time, transfers risk from the (risk-averse) consumer to the (risk-neutral) provider without moral hazard. The structure of the optimal provider-insurance mechanism is derived. The optimal mechanism must be imposed on a noncompetitive industry by regulators, but it can arise spontaneously in competitive industries and can be sustained.

Suggested Citation

  • Michael Manove, 1983. "Provider Insurance," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 489-496, Autumn.
  • Handle: RePEc:rje:bellje:v:14:y:1983:i:autumn:p:489-496
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0361-915X%28198323%2914%3A2%3C489%3API%3E2.0.CO%3B2-D&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Claudia Mejía Pérez, 1999. "La pobreza en Colombia 1978 y 1995 : indicadores," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 51, pages 195-222, Julio Dic.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rje:bellje:v:14:y:1983:i:autumn:p:489-496. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://www.rje.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.