Calendrier du 21 septembre 2017
TOM (Théorie, Organisation et Marchés) Lunch Seminar
Du 21/09/2017 de 12:00 à 13:00
salle R1-13, campus Jourdan, 48 boulevard Jourdan - 750145 Paris
BOBTCHEFF Catherine (PSE)
Insurance Pools for Undiversifiable Risks
écrit avec David Alary (TSE) and Carole Haritchabalet (Université de Pau)
Abstract : This paper discusses the decision of the European Commission not to renew the antitrust exemption for the setting up of syndicates in the insurance industry. Pools are constituted to provide insurance for undiversifiable and/or new risks for which insurers with private expertise are capacity constrained. Our objective is to study if such syndicates improve insurance supply. Organizing this supply amounts to sharing a common value divisible good between capacity constrained and privately informed agents with a reserve price. Pools turn out to operate as a uniform price auction with an “exit/re-entry” option that we compare to a discriminatory auction where no specific agreements are needed. Both auction formats lead to different coverage/premium tradeoffs. If at least one insurer provides an optimistic expertise, the pool offers both lower premiums and higher coverage. This result is reversed when all insurers are pessimistic about the risk. Static comparative results with respect to capacity constraints and reserve price are provided
Behavior seminar
Du 21/09/2017 de 11:00 à 12:00
PSE 48, bld Jourdan 75014 PARIS Salle R2-21
LAPORTE Audrey (PSE)
Why Should Rational Smokers Find it Difficult to Quit? Introducing Uncertainty into the Rational Addiction Model
One problem with the Becker-Murphy model of Rational Addiction, at least in the eyes of many public health specialists, is that it does not explain why so many rational, forward looking, smokers should apparently find it so hard to quit, especially since the terminal conditions are part of an intertemporal optimization problem. In this paper we apply techniques of stochastic control theory to introduce uncertainty into the individual’s perception of how her stock of addiction will accumulate over time as a consequence of her time path of smoking. We assume that addiction capital is basically unobservable, so she cannot adjust her smoking behaviour according to a feedback policy rule but instead builds uncertainty into her consumption plan from the beginning. We discuss the differences between the equation explaining her lifetime smoking trajectory in the deterministic and stochastic cases, and find that the quadratic utility function which underlies the familiar lead-lag consumption form of rational addiction equation is not, in fact, capable of allowing for the type of uncertainty which we consider here.
Behavior Working Group
Du 21/09/2017 de 09:30 à 10:30