Genetic Tests and Inter-Temporal Screening in Competitive Insurance Markets

Winand Emons

The B.E. Journal of Economic Analysis & Policy, 2009, vol. 9, issue 1, 19

Abstract: We consider successive generations of non-altruistic individuals carrying either a good or bad gene. Daughters are more likely to inherit their mother's gene. Competitive insurers can perform a genetic test revealing an agent's gene. They can condition their quotes on the agent's or on her ancestors' genetic status. In equilibrium, generation one is bribed to take the test with an unconditional premium. The insurer uses this information to profitably screen a finite number of generations of their offspring. The offspring of good-gene carriers subsidize the tested generation.

Keywords: genetic tests; insurance; screening; pooling (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.2202/1935-1682.2076 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: Genetic Tests and Intertemporal Screening in Competitive Insurance Markets (2007)
Working Paper: Genetic Tests and Intertemporal Screening in Competitive Insurance Markets (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejeap:v:9:y:2009:i:1:n:26

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejeap/html

DOI: 10.2202/1935-1682.2076

Access Statistics for this article

The B.E. Journal of Economic Analysis & Policy is currently edited by Hendrik Jürges and Sandra Ludwig

More articles in The B.E. Journal of Economic Analysis & Policy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().