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Information and Dynamic Adjustment in Life Insurance Markets

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Abstract

Genetic tests can be expected to produce a large amount of economically important information in the future. What are the effects on a life insurance market if more information becomes available over time, for individuals and possibly also for insurers? Should people buy insurance before or after becoming informed? How do earlier trades influence the market equilibrium in later periods? We also analyze the scope for a Pareto improving regulation of the insurance market.

Suggested Citation

  • Mattias K. Polborn & Mike Hoy & Asha Sadanand, 1999. "Information and Dynamic Adjustment in Life Insurance Markets," UWO Department of Economics Working Papers 9911, University of Western Ontario, Department of Economics.
  • Handle: RePEc:uwo:uwowop:9911
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    More about this item

    Keywords

    insurance; information; adverse selection;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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