Abstract: The conventional theory of adverse selection ignores the effect of precautionary efforts on the probability of death and also doesn’t consider the correlation between the attitude towards risk and risk exposure. The implication of such ignorance will be the insurers end up with high-risk individuals and the market faces the insufficient provision of the policies. However, this theory is not supported by most of the empirical works. The alternative advantageous selection theory assumes a negative correlation between risk aversion and risk exposure and considers the effect of precautionary activity on the death rate. Under these assumptions, insurers end up with relatively low-risk individuals, the market offers sufficient of polici...
We propose a simple model with preference-based adverse selection and moral hazard that formalizes t...
Advantageous selection occurs when the agents most eager to buy insurance are also the cheapest one...
The health insurance industry is faced with risk selection issues affecting insurers’ sustainability...
This paper examines adverse selection and moral hazard in the life insurance market. Using actual co...
The theory of adverse selection in insurance markets has been enormously influential among scholars,...
The theory of adverse selection in insurance markets has been enormously in-fluential among scholars...
This paper considers a number of novel perspectives on risk classification, primarily in the context...
Government intervention in insurance markets is ubiquitous and the theoretical basis for such interv...
This paper considers a number of novel perspectives on risk classification, primarily in the context...
National audienceAdvantageous (or propitious) selection occurs when an increase in the premium of an...
This paper provides empirical evidence consistent with the existence of adverse selection and moral ...
Empirical testing of asymmetric information in the insurance market has uncovered a negative correla...
The thesis of this Essay is that although theory demonstrates that adverse selection can occur, and ...
Adverse selection death spirals are a major theoretical threat in the health insurance market, causi...
This paper evaluates the extent of adverse selection in life insurance and annuities in internationa...
We propose a simple model with preference-based adverse selection and moral hazard that formalizes t...
Advantageous selection occurs when the agents most eager to buy insurance are also the cheapest one...
The health insurance industry is faced with risk selection issues affecting insurers’ sustainability...
This paper examines adverse selection and moral hazard in the life insurance market. Using actual co...
The theory of adverse selection in insurance markets has been enormously influential among scholars,...
The theory of adverse selection in insurance markets has been enormously in-fluential among scholars...
This paper considers a number of novel perspectives on risk classification, primarily in the context...
Government intervention in insurance markets is ubiquitous and the theoretical basis for such interv...
This paper considers a number of novel perspectives on risk classification, primarily in the context...
National audienceAdvantageous (or propitious) selection occurs when an increase in the premium of an...
This paper provides empirical evidence consistent with the existence of adverse selection and moral ...
Empirical testing of asymmetric information in the insurance market has uncovered a negative correla...
The thesis of this Essay is that although theory demonstrates that adverse selection can occur, and ...
Adverse selection death spirals are a major theoretical threat in the health insurance market, causi...
This paper evaluates the extent of adverse selection in life insurance and annuities in internationa...
We propose a simple model with preference-based adverse selection and moral hazard that formalizes t...
Advantageous selection occurs when the agents most eager to buy insurance are also the cheapest one...
The health insurance industry is faced with risk selection issues affecting insurers’ sustainability...