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- W2117487475 abstract "This paper studies the effects on insurance premiums and consumer wel fare when commissions to insurance agencies exist and are used strategi cally to sell insurance policies. The opportunistic behavior of agency in surers that sell the policy paying the highest commission is considered. Different market structures are considered, namely: a duopoly of insurers that compete in commissions (insurer competition), collusion among in surers with agency insurers remaining independent (horizontal collusion or insurer monopoly) and collusion between insurers and agency insurers (vertical integration or exclusive agents). We find that insurer competition and vertical integration trigger higher premiums than horizontal collusion with independent agencies. Furthermore, we argue that the optimal com mission from the consumer viewpoint may be greater than the commission offered under any of the above three market structures." @default.
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- W2117487475 date "2001-01-01" @default.
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- W2117487475 title "Trade Policy and Integration Among Firms Producing Complementary Products." @default.
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