Property Rights Theory

a$)(5$ marks$).$ Explain the assumptions and predictions of the Property Rights Theory $($PRT$).$

b$)(5$ marks$).$ Use PRT to explain why the type of insurance $($life$,$ term$/$substandard$)$ determines

whether insurance companies use an in$-$house sales force or a broker.

c$)(5$ marks$).$ Use PRT to explain why doctors should have some degree of ownership of

Affordable Care Organizations $($ACOs$).$

d$)(5$ marks$).$ Use PRT to explain why stockbrokers are permitted to keep their client lists $($i$.$e$.$

continue to contact and do business with clients$)$ if they are dismissed from their jobs and find

employment with another brokerage house.