When prices hardly matter: Incomplete insurance contracts and markets for repair goods
Andreas Richter and
Joerg Schiller ()
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Martin Nell: University of Hamburg
Andreas Richter: Illinois State University
Risk and Insurance from EconWPA
This paper looks at markets characterized by the fact that the demand side is insured. In these markets a consumer purchases a good to compensate consequences of unfavorable events, such as an accident or an illness. Insurance policies in most lines of insurance base indemnity on the insured’s actual expenses, i.e., the insured would be partially or completely reimbursed when purchasing certain goods. In this setting we discuss the interaction between insurance and repair markets by focusing, on the one hand, upon the development of prices and the market structure in markets with insured customers, and, on the other hand, the resulting backlash on optimal insurance contracting.
Keywords: Incomplete Contracts; Insurance; Repair Markets (search for similar items in EconPapers)
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Note: Type of Document - pdf; pages: 29
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Journal Article: When prices hardly matter: Incomplete insurance contracts and markets for repair goods (2009)
Working Paper: When prices hardly matter: Incomplete insurance contracts and markets for repair goods (2006)
Working Paper: When prices hardly matter: Incomplete insurance contracts and markets for repair goods (2005)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpri:0501002
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