[talk] Efficiency and Equilibria in (Re)Insurance Markets

✔️warterloo 박사 과정의 Michael Boyuan Zhu 연구 내용

 

본 내용은 talk 내용을 정리해 필요한 개념과 추가적으로 공부할만한 내용을 적은 것이다. 경제 논문 강연은 처음 듣는데,

생각보다 흥미로워서 나중에 보면 좋을 것 같다.(확장성이 좋은듯)

 

1. Goal of Research

 

Insurance market: Goal to maximize the wefare (or minimize the risk)

 

It is very important concept in economics, also specifically insurance, because identifying and addressing the gaps in coverage, pricing, and behavior is crucial to ensure that insurance fulfills its role as a tool for risk management and economic stability.

 

2. Setting 

 

 

equilibrium = stability not efficiecny

 

 

It is important to distinguish betwen efficiency and equilibrium : ex Second Welfare Thm , prison's rule

 

Stackelberg equilibrium: fisrt-mover advantage. sets prices of contracts before the policyholders buy insurer

 

💡 Pareto efficiency

- Stackelberg equilibrium could be equal to Pareto efficiency, when it satistisfy equilibrium.

 

In insurance, the provider and supplier is insurer and policyholder. 

 

Then this talk is centralized markets of insurance

 

Notably, hi is not unique even exists. It also considering problem to enhance the research.

 

Then How can we determine the optimal $\mathbb{Q}$ in fact, how to find the funciton to maximize the welfare?

-> this is the next study to publish in IME