Thank you for watching. With car insurance, because insurance companies can partially observe (e.g. how many tickets a driver has received, how many accidents they have been in) whether or not a driver engages in risky behavior, they can prevent moral hazard, or at least deal with it, by pricing behavior according to a driver's risk. This is particularly true now that some insurance companies use those "snapshot" devices that track drivers' behavior. Although they are advertised as a way to help drivers save money, they are also another way for insurance companies to observe the extent to which a driver engages in risky behavior. Hope this helps!
Really really ...helpful...thank you so much.
Thank you for watching!
Thank you very much, it really helps me to understand these concept.
Thank you for watching!
This video is gold. Thank you.
Thank you for watching, Aswath!
thank you so much for this! we need more videos from you.
Thank you for watching! When I get some free time - I'll make some more. I am open to requests!
Thank you for this! I’d like to ask though, what’s a possible solution for the moral hazard of risky drivers with car insurance?
Thank you for watching. With car insurance, because insurance companies can partially observe (e.g. how many tickets a driver has received, how many accidents they have been in) whether or not a driver engages in risky behavior, they can prevent moral hazard, or at least deal with it, by pricing behavior according to a driver's risk. This is particularly true now that some insurance companies use those "snapshot" devices that track drivers' behavior. Although they are advertised as a way to help drivers save money, they are also another way for insurance companies to observe the extent to which a driver engages in risky behavior. Hope this helps!
understood perfectly ... thanku mam
Thank you for watching!
excellent video, thank you
Thank you for watching!
Thank you
Thank you for watching!
Microeconomics
thank u :)
You're welcome! Thank you for watching!
Hal r Varian is your source
M I right???
Sagar, yes, these videos are for a course I taught that used Varian's Intermediate Microeconomics as the textbook. Thank you for watching!
@@KatherineSilzCarson thanks to make this topic understandable.
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Btw m too a economics aspirant
My life revolves around economics
@@sagarkumawat7417 So glad you enjoy economics. Keep up the good work!