Abstract
The paper examines the implications of the commission system for the price of life assurance products and the quality of advice provided by brokers. The competitive equilibrium is shown to be neither first best nor second best efficient. The sources of the inefficiencies are examined and the effects of policy measures considered.
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Gravelle, H. Product Price and Advice Quality: Implications of the Commission System in Life Assurance. Geneva Risk Insur Rev 18, 31–53 (1993). https://doi.org/10.1007/BF01125817
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DOI: https://doi.org/10.1007/BF01125817