Abstract
The effects of rate regulation on insurance have been profusely investigated in the empirical literature but less is known about the effects of entry liberalization. We investigate the effects of an entry liberalization process on conduct of insurance firms under a rate regulation system. An explicit model of oligopolistic interaction is proposed and an application to the Portuguese auto-insurance market is reported. The results show that coordination between insurance firms was only temporarily upset by a gradual liberalization on entry conditions, with firms resuming almost immediately a coordinated equilibrium.
| Original language | English |
|---|---|
| Pages (from-to) | 45-60 |
| Number of pages | 16 |
| Journal | Journal Of Regulatory Economics |
| Volume | 8 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - Jul 1995 |
Keywords
- INDUSTRY
- MODELS
- IMPACT
- PRICE