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- W1533291330 abstract "In some European countries, the liberalization of the motor insurance market occurred in the 1990s led to increasing fares and claims with profits staying stable or decreasing. In this paper, we argue that these phenomena are due to the impact of liberalization on the companies' optimal choices. In particular, in the context of a spatial model, we show that in the short run price deregulation entails decreasing investments in and increasing indemnification costs, such that prices may increase while profits remain unaltered. In the long run, when the number of firms changes endogenously, premiums can be higher or lower than premiums prevailing under regulation, according to the dominance of a competition effect connected to entries or a monitoring effect raising marginal costs." @default.
- W1533291330 created "2016-06-24" @default.
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- W1533291330 date "2004-01-01" @default.
- W1533291330 modified "2023-10-14" @default.
- W1533291330 title "From Regulation to Free Market: How to Explain the Experience of the European Motor Insurance Market" @default.
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- W1533291330 doi "https://doi.org/10.2139/ssrn.621561" @default.
- W1533291330 hasPublicationYear "2004" @default.
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