Strategic Price Discrimination in Compulsory Insurance Markets

摘要: This paper considers price discrimination when competing firms do not observe a customer's type but only some other variable correlated to it. is typical situation in many insurance markets—such as motor insurance—where it also often the case that compulsory. We characterise equilibria and their welfare properties under various regimes. show based on immutable characteristics such gender dominant strategy, either offer policies at fixed or they charge according consumption costs. In latter case, can be an outcome of strategic interaction alone situations where would adopted by monopolist. Strategic may increase cross subsidies between types, contrary expectations.