On the cost of sympathy : a alternative model of insurance markets
Autor(a) principal: | |
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Data de Publicação: | 1999 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Institucional do FGV (FGV Repositório Digital) |
Texto Completo: | http://hdl.handle.net/10438/12229 |
Resumo: | The paper provides an alternative model for insurance market with three types of agents: households, providers of a service and insurance companies. Households have uncertainty about future leveIs of income. Providers, if hired by a household, perform a diagnoses and privately learn a signal. For each signal there is a procedure that maximizes the likelihood of the household obtaining the good state of nature. The paper assumes that providers care about their income and also about the likelihood households will obtain the good state of nature (sympathy assumption). This assumption is satisfied if, for example, they care about their reputation or if there are possible litigation costs in case they do not use the appropriate procedure. Finally, insurance companies offer contracts to both providers and households. The paper provides sufficient conditions for the existence of equilibrium and shows that the sympathy assumption 1eads to a 10ss of welfare for the households due to the need to incentive providers to choose the least expensive treatment. |
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Lisboa, Marcos de BarrosEscolas::EPGEFGV2014-10-27T11:31:48Z2014-10-27T11:31:48Z1999-06-24http://hdl.handle.net/10438/12229The paper provides an alternative model for insurance market with three types of agents: households, providers of a service and insurance companies. Households have uncertainty about future leveIs of income. Providers, if hired by a household, perform a diagnoses and privately learn a signal. For each signal there is a procedure that maximizes the likelihood of the household obtaining the good state of nature. The paper assumes that providers care about their income and also about the likelihood households will obtain the good state of nature (sympathy assumption). This assumption is satisfied if, for example, they care about their reputation or if there are possible litigation costs in case they do not use the appropriate procedure. Finally, insurance companies offer contracts to both providers and households. The paper provides sufficient conditions for the existence of equilibrium and shows that the sympathy assumption 1eads to a 10ss of welfare for the households due to the need to incentive providers to choose the least expensive treatment.engEscola de Pós-Graduação em Economia da FGVSeminários de pesquisa econômica da EPGETodo cuidado foi dispensado para respeitar os direitos autorais deste trabalho. Entretanto, caso esta obra aqui depositada seja protegida por direitos autorais externos a esta instituição, contamos com a compreensão do autor e solicitamos que o mesmo faça contato através do Fale Conosco para que possamos tomar as providências cabíveisinfo:eu-repo/semantics/openAccessOn the cost of sympathy : a alternative model of insurance marketsinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleEconomiaSeguro-saúdereponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVORIGINAL000089375.pdf000089375.pdfapplication/pdf547233https://repositorio.fgv.br/bitstreams/fc445837-0345-4709-81dc-061c6d066851/download4634242a5d27c9b3eaea30d093ecbceaMD51LICENSElicense.txtlicense.txttext/plain; charset=utf-84707https://repositorio.fgv.br/bitstreams/a4af9255-f5f6-4d7a-b3fe-c999e5511a45/downloaddfb340242cced38a6cca06c627998fa1MD52TEXT000089375.pdf.txt000089375.pdf.txtExtracted 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dc.title.eng.fl_str_mv |
On the cost of sympathy : a alternative model of insurance markets |
title |
On the cost of sympathy : a alternative model of insurance markets |
spellingShingle |
On the cost of sympathy : a alternative model of insurance markets Lisboa, Marcos de Barros Economia Seguro-saúde |
title_short |
On the cost of sympathy : a alternative model of insurance markets |
title_full |
On the cost of sympathy : a alternative model of insurance markets |
title_fullStr |
On the cost of sympathy : a alternative model of insurance markets |
title_full_unstemmed |
On the cost of sympathy : a alternative model of insurance markets |
title_sort |
On the cost of sympathy : a alternative model of insurance markets |
author |
Lisboa, Marcos de Barros |
author_facet |
Lisboa, Marcos de Barros |
author_role |
author |
dc.contributor.unidadefgv.por.fl_str_mv |
Escolas::EPGE |
dc.contributor.affiliation.none.fl_str_mv |
FGV |
dc.contributor.author.fl_str_mv |
Lisboa, Marcos de Barros |
dc.subject.area.por.fl_str_mv |
Economia |
topic |
Economia Seguro-saúde |
dc.subject.bibliodata.por.fl_str_mv |
Seguro-saúde |
description |
The paper provides an alternative model for insurance market with three types of agents: households, providers of a service and insurance companies. Households have uncertainty about future leveIs of income. Providers, if hired by a household, perform a diagnoses and privately learn a signal. For each signal there is a procedure that maximizes the likelihood of the household obtaining the good state of nature. The paper assumes that providers care about their income and also about the likelihood households will obtain the good state of nature (sympathy assumption). This assumption is satisfied if, for example, they care about their reputation or if there are possible litigation costs in case they do not use the appropriate procedure. Finally, insurance companies offer contracts to both providers and households. The paper provides sufficient conditions for the existence of equilibrium and shows that the sympathy assumption 1eads to a 10ss of welfare for the households due to the need to incentive providers to choose the least expensive treatment. |
publishDate |
1999 |
dc.date.issued.fl_str_mv |
1999-06-24 |
dc.date.accessioned.fl_str_mv |
2014-10-27T11:31:48Z |
dc.date.available.fl_str_mv |
2014-10-27T11:31:48Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
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article |
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publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10438/12229 |
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http://hdl.handle.net/10438/12229 |
dc.language.iso.fl_str_mv |
eng |
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eng |
dc.relation.ispartofseries.por.fl_str_mv |
Seminários de pesquisa econômica da EPGE |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
dc.source.none.fl_str_mv |
reponame:Repositório Institucional do FGV (FGV Repositório Digital) instname:Fundação Getulio Vargas (FGV) instacron:FGV |
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Fundação Getulio Vargas (FGV) |
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FGV |
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FGV |
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Repositório Institucional do FGV (FGV Repositório Digital) |
collection |
Repositório Institucional do FGV (FGV Repositório Digital) |
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