Adverse Selection and Moral Hazard in a Dynamic Model of Auto Insurance

Submitted on 23rd November 2018
Source
academic

This paper looks to measure risk-related private information and investigate its importance in a setting where individuals are able to modify risk ex-ante through costly effort. Additionally, a framework is used to investigate the relative effectiveness of dynamic versus static contract features in incentivizing effort and inducing sorting on private risks, as well as to assess the welfare costs of mandatory liability insurance.

Source
Haas School of Business, Johns Hopkins University, Porto Business School
Length of Resource
52 pages
Author
Przemyslaw Jeziorski, Elena Krasnokutskaya & Olivia Ceccarini
Date Published
Publication Type
paper
Resource Type
academic