Product Price and Advice Quality: Implications of the Commission System in Life Assurance

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Abstract

This paper examines the implications of the commission system for the price of life assurance products and the quality of advice provided by brokers. The competitive equilibrium is shown to be neither first best nor second best efficient. The sources of the inefficiencies are examined and the effects of policy measures considered.
Original languageUndefined/Unknown
Pages (from-to)31-53
Number of pages23
JournalGENEVA PAPERS ON RISK AND INSURANCE THEORY
Volume18
Issue number1
Publication statusPublished - 1993

Keywords

  • Insurance Insurance Companies (G220)

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