An Empirical Investigation of the Structure-Conduct-Performance Paradigm in the General Insurance Market

Tsang, Thomas (2011) An Empirical Investigation of the Structure-Conduct-Performance Paradigm in the General Insurance Market. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

This research aims to provide evidence on the SCP paradigm using recent accounting data. The study looks at the insurance market, specifically the general insurance market using an industrial organisations approach. Previous literature has provided mixed evidence on SCP. Further evidence is required because of the implications on the efficacy of competition policy.

This paper extends previous literature with the inclusion of two performance variables and two market structure variables. This enables a better understanding of the determination of prices and profits in the insurance market.

The insurance market has been criticised recently for the high premiums charged to customers with a 40% increase over the past year. There is a debate between whether the prices are a consequence of higher costs or firms exploiting their market position, highlighting the need for research in this area.

The results are mixed, but do suggest firms exploit their market power to charge higher prices to customers. Evidence was not found for SCP, but the inclusion of two market structure variables has provided further insight into the inclusion of either variable.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 25 Apr 2012 13:32
Last Modified: 23 Oct 2016 02:20
URI: http://eprints.nottingham.ac.uk/id/eprint/25117

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