Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Asymmetric Information - Insurance Markets?
In the United States, health insurance is usually provided for employees through contracts between the insurance company and their employer while individuals often search the conditions under which they would privately take out insurance quite unattractive. In how far does this point to an asymmetric information problem between insurance company and individual? Who could take out insurance contracts in a market in which contracting is only required directly between individuals and insurers? What is the basic advantage of a contract with an employer? Give an informal discussion.
Answer: There exists an asymmetric information problem if the insurer will not distinguish between individuals with different risk while the individuals themselves can. When offering a health insurance contract at the fair pooled risk premium, only bad risks can want to take out full cover and the insurance company does not break even. In equilibrium, full cover will only be offered at the fair premium for bad risks. Such contracts are unattractive for individuals who pose a smaller risk for the insurance company.
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4
Cost Push or Supply Inflation: It is a situation where the process of increasing price level is caused by increasing costs of production which push up prices. Cost push infla
dicuss the relevance of studing production theory and analysis inn your career as a student of manegerial economics
The Supply Curve – The supply curve exhibits how much of a good manufacturerss are willing to sell at a particular given price, holding constant other factors that can aff
Consider the following duopoly with differentiated goods where x 1 and x 2 denote the amounts of the goods 1 and 2 respectively, with prices p 1 and p 2 . The demand funct
Explain about the money metric utility functions. The Money Metric Utility Functions: It is a nice construction including the expenditure function which comes up into a vari
Marginal rate of technical substitution in the theory of production is similar to the concept of marginal rate of substituent to in the indifference curve analysis of consumer dema
Using the Wage Rate and Output per Hour as indicated on the table below, calculate the output per dollar wage and unit labor cost. Then decide on the optimal wage rate for this c
Why has it been difficult to produce a single estimate of an environmentally adjusted or "greened" GDP? What are the two approaches that can be used to put a value on environmental
FACTORS AFFECTING FLEXIBLE EXCHANGE RATE: Shifts in the demand and supply schedules for foreign currency take place on accountof a number of factors. Some of them are enumerat
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd