Is the Market Classification of Risk Always Efficient? - Evidence from German Third Party Motor Insurance

This paper studies the empirical effects of risk classification in the mandatory third-party motor insurance of Germany following the European Union’s directive to de-regulate insurance tariffs of 1994. We find evidence that inefficient risk categories had been selected while potentially efficient information was dismissed. Risk classification did generally not improve the efficiency of contracting or the composition of insureds in this market. These findings are partly explained by the continuing existence of institutional restraints in this market such as compulsory fixed coverage and unitary owner insurance.

A Faceted Classification Scheme for Computer-Mediated Discourse

This article describes a classification scheme for computer-mediated discourse that classifies samples in terms of clusters of features, or “facets”. The goal of the scheme is to synthesize and articulate aspects of technical and social context that influence discourse usage in CMC environments. The classification scheme is motivated, presented in detail with support from existing literature, and illustrated through a comparison of two types of weblog (blog) data. In concluding, the advantages and limitations of the scheme are weighed.