The Stochastic Dominance of No-Fault Automobile Insurance精选.pdfVIP

The Stochastic Dominance of No-Fault Automobile Insurance Author(s): J. David Cummins and Mary A. Weiss Reviewed work(s): Source: The Journal of Risk and Insurance, Vol. 60, No. 2 (Jun., 1993), pp. 230-264 Published by: American Risk and Insurance Association Stable URL: /stable/252906 . Accessed: 18/12/2012 05:10 Your use of the JSTOR archive indicates your acceptance of the Terms Conditions of Use, available at . /page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@. . American Risk and Insurance Association is collaborating with JSTOR to digitize, preserve and extend access to The Journal of Risk and Insurance. This content downloaded on Tue, 18 Dec 2012 05:10:52 AM All use subject to JSTOR Terms and Conditions X The Jour-nial of Risk atid insurance, 1993 Vol. 60, No. 2, 230-264 The Stochastic Dominance of No-Fault Automobile Insurance J. David Cummins Mary A. Weiss ABSTRACT This article presents a rigorous analysis of no-fault automobile insurance in terms of sto- chastic dominance theory. In the baseline case, with idenLicaldrivers and actuarially fair insurance, no-fault is stochastically dominant as long as the no-fault insurance premium exceeds the tort premium. In this case, no-fault brings a higher proportion of accident costs under