期刊名称：International Journal of Economics and Business Modeling
印刷版ISSN：0976-531X
电子版ISSN：0976-5352
出版年度：2010
卷号：1
期号：2
页码：12-14
语种：English
出版社：Bioinfo Publications
摘要：This article explores the vertical differentiation model in the insurance market. The main results are as follows. First, the equilibrium price differential is not a linear function of the highest quality valuation (accident probability) and the maximum and minimum quality differentials. Second, a high quality insurance firm does not always receive greater equilibrium expected profit, even if its average cost is the same as that of a low-quality insurance firm. Finally, a change in the highest quality valuation has an ambiguous effect on the equilibrium expected profit differential.
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