The impact of intermediary remuneration in differentiated insurance markets

This article deals with the impact of intermediaries on insurance market transparency and performance. In a market exhibiting product differentiation and coexistence of perfectly and imperfectly informed consumers, competition among insurers leads to non-existence of a pure-strategy market equilibrium. Consumers may become informed about product suitability by consulting an intermediary. We explicitly model two intermediary remuneration systems: commissions and fees. We find that social welfare under fees is first-best efficient but fees lead to lower expected profits of insurers and non-existence of a pure-strategy market equilibrium. Commissions, in contrast, cause 'overinformation' of consumers relative to minimal social cost, but yield a full-information equilibrium in pure strategies associated with higher expected profits of insurers. This might explain why intermediaries are generally compensated by insurers. --product differentiation,intermediation,insurance oligopoly

Towards finite-dimensional gelation

We consider the gelation of particles which are permanently connected by random crosslinks, drawn from an ensemble of finite-dimensional continuum percolation. To average over the randomness, we apply the replica trick, and interpret the replicated and crosslink-averaged model as an effective molecular fluid. A Mayer-cluster expansion for moments of the local static density fluctuations is set up. The simplest non-trivial contribution to this series leads back to mean-field theory. The central quantity of mean-field theory is the distribution of localization lengths, which we compute for all connectivities. The highly crosslinked gel is characterized by a one-to-one correspondence of connectivity and localization length. Taking into account higher contributions in the Mayer-cluster expansion, systematic corrections to mean-field can be included. The sol-gel transition shifts to a higher number of crosslinks per particle, as more compact structures are favored. The critical behavior of the model remains unchanged as long as finite truncations of the cluster expansion are considered. To complete the picture, we also discuss various geometrical properties of the crosslink network, e.g. connectivity correlations, and relate the studied crosslink ensemble to a wider class of ensembles, including the Deam-Edwards distribution.Comment: 18 pages, 4 figures, version to be published in EPJ

The optimal pricing strategy for an insurer when risk preferences are stochastically distributed

The present paper analyzes the demand for insurance when the insurer has incomplete information about types of potential customers. We assume that customers´ risk preferences cannot be distinguished by the insurer. Therefore, the standard result in insurance economics that the insurer discriminates perfectly in prices cannot be applied. Instead, the present article examines the optimal pricing rule for an insurer faced with stochastic distribution of risk preferences. Within this general model framework, we show that an optimal strategy always exists. Both fixed and proportionate premium loadings (relative to expected loss) are considered. -- Der vorliegende Artikel analysiert die optimale Prämienpolitik eines Versicherers bei stochastischer Verteilung der Nachfragertypen auf Basis einer Preis-Absatz-Funktion. Dem Versicherer ist hier lediglich die Wahrscheinlichkeitsverteilung der individuellen Nachfragertypen bekannt und eine üblicherweise postulierte vollständige Preisdiskriminierung des Versicherers ist daher nicht möglich. Die allgemeine Preis-Absatz-Funktion des Versicherers variiert in Abhängigkeit der verwendeten Modellparameter. Wir zeigen, dass in diesem allgemeinen Modellrahmen stets eine optimale Preispolitik des Versicherers existiert. Dabei wird in Bezug auf den aktuariell fairen Wert der Police sowohl ein fixer als auch ein proportionaler Prämienzuschlag des Versicherers berücksichtigt.insurance demand,optimal insurance pricing,stochastically distributed risk preferences

Mechanical properties of branched actin filaments

Cells moving on a two dimensional substrate generate motion by polymerizing actin filament networks inside a flat membrane protrusion. New filaments are generated by branching off existing ones, giving rise to branched network structures. We investigate the force-extension relation of branched filaments, grafted on an elastic structure at one end and pushing with the free ends against the leading edge cell membrane. Single filaments are modeled as worm-like chains, whose thermal bending fluctuations are restricted by the leading edge cell membrane, resulting in an effective force. Branching can increase the stiffness considerably; however the effect depends on branch point position and filament orientation, being most pronounced for intermediate tilt angles and intermediate branch point positions. We describe filament networks without cross-linkers to focus on the effect of branching. We use randomly positioned branch points, as generated in the process of treadmilling, and orientation distributions as measured in lamellipodia. These networks reproduce both the weak and strong force response of lamellipodia as measured in force-velocity experiments. We compare properties of branched and unbranched networks. The ratio of the network average of the force per branched filament to the average force per unbranched filament depends on the orientation distribution of the filaments. The ratio exhibits compression dependence and may go up to about 4.5 in networks with a narrow orientation distribution. With orientation distributions measured in lamellipodia, it is about two and essentially independent from network compression, graft elasticity and filament persistence length

Deployment verification of large CFRP helical high-gain antenna for AIS signals

Deployment verification of large CFRP helical high-gain antenna for AIS signal

Urban Growth in Germany – The Impact of Localization and Urbanization Economies

This study examines the impact of localization and urbanization economies as well as the impact of city size on urban growth in German cities from 2003 to 2007. Although, from a theoretical perspective, agglomeration economies are supposed to have positive impacts on regional growth, prior empirical studies do not show consistent results. Especially little is known about agglomeration economies in Germany, where interregional support policy and the characteristics of the federal system are further determinants of urban growth. The results of the econometric analysis show a U-shaped relationship between specialization and urban growth, which particularly holds for manufacturing industries. We do not find evidence for the impact of Jacobs-externalities; however, city size shows a positive (but decreasing) effect on urban growth.agglomeration, localization economies, urbanization economies, urban growth, specialization, diversification