Auditing claims in the insurance market with fraud: the credibility issue

Article Abstract:

The equilibrium of an insurance market where opportunistic fraud takes place is studied. The insurer-policyholder relationship becomes an incomplete information game when insurers fail to distinguish between honest policyholders and opportunists. The market equilibrium is thus dependent on whether insurers can credibly commit to their audit strategies or not. Results showed that a no commitment equilibrium gives rise to welfare loss for honest individuals. It was also shown that transferring monitoring costs to a budget-balanced common agency would decrease the commitment problem.

Police Protection, Insurance carriers, not elsewhere classified, Insurance NEC, Other Direct Insurance (except Life, Health, and Medical) Carriers, Fraud, Insurance industry, Insurance, Crimes against, Accounting and auditing, Auditing, Practice, Insurance fraud

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Point-record driving licence and road safety: an economic approach

Article Abstract:

The impact of implementing point system and withdrawal of driving license to check traffic violations is discussed.

United States, Usage, Control, Traffic violations, Point system (Traffic violations)

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Creating countervailing incentives through the choice of instruments

Article Abstract:

Efficiency of output and input incentive schemes in an agency model under adverse selection is examined.

Research, Input-output analysis

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