Related Experiment Video
Updated: Jun 4, 2025

The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
Published on: August 25, 2023
Equity and efficiency effects of flat premiums
1Department of Economics, Saint Joseph's University, 5600 City Avenue, Philadelphia, PA, 19131, USA.
Abstract:
This paper analyzes the impact of flat premiums on equity and efficiency within a regulated market. We examine the consequences of shifting from a risk-adjusted premium model to a flat premium system, particularly focusing on how this shift affects different income groups and market efficiency. Using a combination of theoretical modeling and empirical analysis, we find that flat premiums may lead to increased cross-subsidization among participants, with notable effects on both equity and efficiency. Our results suggest that while flat premiums simplify the regulatory framework, they also introduce trade-offs that policymakers must carefully consider.
Related Concept Videos
Framing Effects
Actuarial Approach
Consider the example of a high-risk surgical procedure with significant early-stage mortality. A two-year clinical study is conducted,...
Frictional Forces on Flat Belts
Production Efficiency
Column Efficiency: Plate Theory
A higher number of theoretical plates signifies better column efficiency and improved separation capabilities. Plate height affects bandwidth and separation quality; it is inversely...
Hepatic Drug Clearance: Effect of Protein Binding
For low-extraction-ratio drugs that are less than 80% protein-bound, minor changes in protein binding...

