Managed Claims: Zur Notwendigkeit einer vertikalen Integration von Versicherungs- und Reparaturleistungen
The paper deals with the so called external moral hazard. This problem occurs, when-ever insurance companies bear the repair costs of the insured in the case of a damage. The insurance coverage results in a decrease of the price elasticity of demand and therefore in higher prices for repair services and goods, since markets for repair goods are usually imperfect and prices are thus above marginal costs. Empirical evidence is given that the price increase for repair services and goods due to external moral hazard is quite substantial. It is argued in this paper that the only way to tackle external moral hazard efficiently is a vertical integration of insurance on the one hand and the supply of repair goods and services on the other hand: Insurance companies have either to provide repair goods and services by themselves or make cooperation agreements with providers.
|Date of creation:||2001|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.hzv-uhh.de/|
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- Frech, H E, III & Ginsburg, Paul B, 1975. "Imposed Health Insurance in Monopolistic Markets: A Theoretical Analysis," Economic Inquiry, Western Economic Association International, vol. 13(1), pages 55-70, March.
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"Are Invisible Hands Good Hands? Moral Hazard, Competition, and the Second-Best in Health Care Markets,"
Journal of Political Economy,
University of Chicago Press, vol. 108(5), pages 992-1005, October.
- Martin Gaynor & Deborah Haas-Wilson & William B. Vogt, 1998. "Are Invisible Hands Good Hands? Moral Hazard, Competition, and the Second Best in Health Care Markets," NBER Working Papers 6865, National Bureau of Economic Research, Inc.
- Sherry Glied, 1999. "Managed Care," NBER Working Papers 7205, National Bureau of Economic Research, Inc.
- Mark V. Pauly, 1974. "Overinsurance and Public Provision of Insurance: The Roles of Moral Hazard and Adverse Selection," The Quarterly Journal of Economics, Oxford University Press, vol. 88(1), pages 44-62.
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