Question
Some auto insurance providers offer a program in which the company tracks a drivers habits and adjusts their insurance rates accordingly; those who drive safely
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Some auto insurance providers offer a program in which the company tracks a drivers habits and adjusts their insurance rates accordingly; those who drive safely and follow traffic laws are rewarded with lower rates. [2]
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What type of market failure does this program address?
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Would you expect a program like this improve the efficiency of the auto insurance market? Explain your answer.
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Entrepreneurial Finance
Authors: Steven Rogers
4th Edition
1260461440, 978-1260461442
