Contracting with Present-Biased Consumers in Insurance Markets
文献类型：期刊论文
| 作者 | Ai, Jing1; Zhao, Lin2 ; Zhu, Wei3
|
| 刊名 | Geneva Risk and Insurance Review
 |
| 出版日期 | 2016-09-01 |
| 卷号 | 41期号:2页码:107-148 |
| 关键词 | present bias time-inconsistent preference self-control consumer naivete moral hazard insurance market |
| ISSN号 | 1554-964X |
| DOI | 10.1057/s10713-016-0011-2 |
| 英文摘要 | Present bias challenges consumers with self-control problems when they implement precautionary efforts in insurance markets. To explore how rational insurance companies respond to this bias, this paper analyzes a contract design problem in a monopolistic insurance market with ex ante moral hazard. Weconsider two types of consumers with this bias: the "naifs", who do not foresee the present bias and make decisions in a myopic way, and the "sophisticates", who foresee the bias and incorporate it in the decision process. Relative to the benchmark case where consumers are time-consistent, we show that (i) present bias reduces the monopoly profit, regardless of the consumer type; (ii) present bias can either reduce or increase the coverage of the profit-maximizing insurance contract depending on the extent of the bias; and (iii) when present bias is severe, the insurance company can profitably exploit naifs but not sophisticates. These results still hold when consumers are heterogeneous and their types are unknown to the insurance company. |
| 资助项目 | National Science Foundation of China (NSFC)[71301161] ; National Science Foundation of China (NSFC)[71532013] ; National Science Foundation of China (NSFC)[71201029] ; National Science Foundation of China (NSFC)[71373044] ; Fundamental Research Funds for the Central Universities in UIBE[CXTD5-04] |
| WOS研究方向 | Business & Economics |
| 语种 | 英语 |
| WOS记录号 | WOS:000392921300001 |
| 出版者 | PALGRAVE MACMILLAN LTD |
| 源URL | [http://ir.amss.ac.cn/handle/2S8OKBNM/24626]  |
| 专题 | 系统科学研究所 |
| 通讯作者 | Ai, Jing |
| 作者单位 | 1.Univ Hawaii Manoa, Shidler Coll Business, 2404 Maile Way, Honolulu, HI 96822 USA 2.Chinese Acad Sci, Acad Math & Syst Sci, Beijing 100190, Peoples R China 3.Univ Int Business & Econ, Sch Insurance & Econ, Beijing 100029, Peoples R China |
| 推荐引用方式 GB/T 7714 | Ai, Jing,Zhao, Lin,Zhu, Wei. Contracting with Present-Biased Consumers in Insurance Markets[J]. Geneva Risk and Insurance Review,2016,41(2):107-148. |
| APA | Ai, Jing,Zhao, Lin,&Zhu, Wei.(2016).Contracting with Present-Biased Consumers in Insurance Markets.Geneva Risk and Insurance Review,41(2),107-148. |
| MLA | Ai, Jing,et al."Contracting with Present-Biased Consumers in Insurance Markets".Geneva Risk and Insurance Review 41.2(2016):107-148. |
入库方式： OAI收割
来源：数学与系统科学研究院
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