Rationality of Insurance Pricing:Do Insurers Herd?
This paper investigates the role of herding behavior in insurance pricing for property-casualty insurance companies in United States.We examine whether insurance price movements are due to rational adjustments for fundamental changes or over-adjustments resulted from irrational herding.Consistent to the herding hypothesis,we find that insurers tend to follow the herd to lower or raise insurance price.We also find that insurers are more responsive to the herd to decrease price than the herd to raise price.Firms of larger size and older age are more likely to follow the herd.Mutual and stock insurers are found to have similar patterns of herding.
Herding Insurance Pricing
REN Yayuan
College of Business, Illinois State of University, Illinois State, the U.S., 61791
国内会议
青岛
英文
299-306
2012-07-18（万方平台首次上网日期，不代表论文的发表时间）