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Respond to the question: Credit card insurance Asymmetric inform?

03/13/2001 09:59 PM by Brandon;
Hi Rodrigo! Yes, I'm aware of the analysis by Spence (1974). Actually, I had in mind another study, done by Rothschild and Stiglitz (1976). They showed that an insurance company, if it offers a "menu" of insurance policies with different premiums and amount of coverage, the insuree who belongs to the "high-risk" group will choose the policy with high coverage. [Manage messages]

03/13/2001 09:59 PM by Brandon;
Hi Rodrigo! Yes, I'm aware of the analysis by Spence (1974). Actually, I had in mind another study, done by Rothschild and Stiglitz (1976). They showed that an insurance company, if it offers a "menu" of insurance policies with [View full text and thread]

03/13/2001 10:54 AM by Rodrigo; credit card insurance
Hi, Brandon, I think it makes sense. Do you know Spence's model, where workers send a costly signal that helps firms to screen them? Only high quality workers are willing to send this signal, because they spent money acquiring good [View full text and thread]

03/12/2001 01:41 AM by Brandon; Credit card insurance (Asymmetric information)
"In credit card insurance, you usually have to pay for the first $100 or so of damages if the card is lost or stolen. Claims over this amount are absorbed by the credit card company. Discuss the rationale for this type of [View full text and thread]