An insurance company is considering issuing three types of fire insurance policies: (i) complete insurance coverage, (ii)

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An insurance company is considering issuing three types of fire insurance policies: (i) complete insurance coverage, (ii) complete coverage above and beyond a $10,000 deductible, and (iii) 90% coverage of all losses. Which policy is more likely to create moral hazard problems?
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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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