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Price regulation in insurance markets with asymmetric information
Affiliation:1. IAE Savoie Mont-Blanc, Université Savoie Mont Blanc, IREGE, BP 80439, 74944 Annecy-le-Vieux, Cedex, France;2. Montpellier Business School, 2300 Avenue des Moulins, 34185 Montpellier, Cedex 4, France
Abstract:The paper presents and discusses a regulatory policy in insurance markets. It is based upon a two-sided rule: each company must propose at least one contract with full coverage and a ceiling is imposed on the level of premiums.
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