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Sunk costs and screening: two-part tariffs in life insurance

Recurso electrónico / Electronic resource
MARC record
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005  20220911202042.0
008  200921e20200901usa|||p |0|||b|eng d
040  ‎$a‎MAP‎$b‎spa‎$d‎MAP
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24510‎$a‎Sunk costs and screening: two-part tariffs in life insurance‎$c‎James M. Carson..[Et al.]
520  ‎$a‎We develop a model of insurance pricing under heterogeneous lapse rates with asymmetric information about lapse likelihood within the context of an optional two-part tariff as a screening device for future policyholder behavior. We then test for consumer self-selection using policy-level data on life insurance backdating. We exploit randomness in the initial tariff size to separately identify the selection and sunk cost effects of backdating on lapse proclivity. We find that consumers who are less likely to lapse self-select into the two-part tariff pricing structure and we also document consumer behavior consistent with sunk cost fallacy.
650 4‎$0‎MAPA20080570590‎$a‎Seguro de vida
650 4‎$0‎MAPA20080586294‎$a‎Mercado de seguros
650 4‎$0‎MAPA20080602437‎$a‎Matemática del seguro
650 4‎$0‎MAPA20080598358‎$a‎Productos de seguros
650 4‎$0‎MAPA20080624019‎$a‎Comportamiento del consumidor
650 4‎$0‎MAPA20080545062‎$a‎Precios
700  ‎$0‎MAPA20080662882‎$a‎Carson, James M.
7730 ‎$w‎MAP20077000727‎$t‎The Journal of risk and insurance‎$d‎Nueva York : The American Risk and Insurance Association, 1964-‎$x‎0022-4367‎$g‎01/09/2020 Volumen 87 Número 3 - septiembre 2020 , p. 689-718