Microtheory Seminar Series. "Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? (joint with Claudia Herresthal and Tatiana Mayskaya)"
Published: 2 May 2024
28 May 2024. Dr Arina Nikandrova; City, University of London
Dr Arina Nikandrova; City, University of London
"Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? (joint with Claudia Herresthal and Tatiana Mayskaya)"
Tuesday, 28 May 2024. 16:00-17:30
Room 356, Gilbert Scott Building
Abstract
A merger of two companies active in seemingly unrelated markets creates data linkage: by operating in a product market, the merged company acquires an informational advantage in an insurance market where companies compete in menus of contracts. In the insurance market, the informed insurer earns rent through cream-skimming. Some of this rent is passed on to consumers in the product market. Overall, the data linkage makes consumers better off when the insurance market is competitive and, under some conditions, even when the insurance market is monopolistic. The role of competitiveness of the product market and the data sharing requirement are discussed.
Bio
I am an academic at City, University of London. My research interests lie in the field of microeconomic theory and applications, focusing on information acquisition in selling mechanisms, dynamic learning and competition economics. Outside academia, I am currently an academic affiliate at NERA Economic Consulting.
For further information, please contact business-school-research@glasgow.ac.uk
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First published: 2 May 2024