1 Summary of the Paper

（ひとことメモ）

  • 保険マーケットにおいて生じる非効率性を（ミクロ経済学の授業で扱うような）消費者理論・生産者理論のフレームワークで視覚的に説明。
  • 特に、Adverse Selection、Advantageous Selectionそれぞれのケースにおいて、\(MC\)の傾きが異なる（Adverse Selectionの場合右下がり、Advantageous Selectionの場合右上がり）となることを示した。

1.1 Motivation

  • Provide a graphical illustration of how standard consumer and producer theory can be used to quantify the welfare loss associated with inefficient pricing in insurance markets with selection
  • Show how this welfare loss can be estimated empirically using identifying variation in the price of insurance
    • The variation, together with quantity data, allows us to estimate the demand for insurance
    • The same variation, together with cost data, allows us to estimate how insurers’ costs vary as market participants endogenously respond to price
  • Apply the above approach to data on health insurance form one specific company, detecting adverse selection but its impacts are small

1.3 Contribution

  • Propose a complementary approach to empirical welfare analysis in insurance markets
  • Make fewer assumptions about the underlying primitives, yet impose enough structure to allow meaningful welfare analysis