EconPapers    
Economics at your fingertips  
 

Raising Capital in an Insurance Oligopoly Market

Julien Hardelin and Sabine Lemoyne de Forges
Additional contact information
Sabine Lemoyne de Forges: Département d’Économie, École Polytechnique, 91128 Palaiseau Cedex, France and AgroParisTech ENGREF, 19 avenue du Maine, 75732 Paris Cedex 15, France

The Geneva Risk and Insurance Review, 2012, vol. 37, issue 1, 83-108

Abstract: We consider an oligopoly market where firms offer insurance coverage against a risk characterised by aggregate uncertainty. Firms behave as if they were risk averse for a standard reason of costly external finance. The model consists in a two-stage game where firms choose their internal capital level at stage one and compete on price at stage two. We characterise the subgame perfect Nash equilibria of this game and focus attention on the strategic impact of insurers capital choice. We discuss the model with regard to the insurance industry specificities and regulation.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://www.palgrave-journals.com/grir/journal/v37/n1/pdf/grir20114a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/grir/journal/v37/n1/full/grir20114a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Raising capital in an insurance oligopoly market (2009) Downloads
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:pal:genrir:v:37:y:2012:i:1:p:83-108

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10713

Access Statistics for this article

The Geneva Risk and Insurance Review is currently edited by Michael Hoy and Nicolas Treich

More articles in The Geneva Risk and Insurance Review from Palgrave Macmillan, International Association for the Study of Insurance Economics (The Geneva Association) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2023-06-15
Handle: RePEc:pal:genrir:v:37:y:2012:i:1:p:83-108