Estimating the market power of the insurance industry in Iran using the Hall-Roger approach (during the period 1380-1399)

Subject Areas : Labor and Demographic Economics

Jafar  Yousefi ¹ (Ph.D. student of Department of Economics, faculty of humanities. Miyaneh Branch, , Islamic Azad University, Mianeh, Iran)
Mehdi  Moradi ² (Assistant Professor, Department of Economics, Payam-e- Noor University, Tehran, Iran)
Yousof  HajiAsghari ³ (Assistant Professor, Department of Management, Faculty of Humanities, Miyaneh Branch, Islamic Azad University, Miyaneh, Iran)
Rostam  Garadagi ⁴ (Assistant professor , Department of Management, Faculty of Humanities, Miyaneh Branch, Islamic Azad University, Miyaneh Iran)

Received: 2023-01-22 Accepted : 2023-03-15 Published : 2023-02-20

Keywords: Insurance Industry, concentration, Market power, Market Structure, market performance,

Abstract :

Estimating the amount of market power and determining the market structure of various industries is one of the most important topics in microeconomics,because the amount of production and price of various goods and services is affected by the degree of monopoly and market power of that industry.The purpose of this research is to estimate the degree of agreement and the levelof market power of the insurance industry using the Hall-Roger approach in the form of supply and demand equations with the help ofpanel data using the two-stage least squares method.For this purpose,the information of27public and private insurance companies In addition to the large share of their financial market in employment, the insurance industry is closely related to the characteristics of savings and the level of economic development of countries, and as one of the tools of risk management, it provides the expansion of social welfare on the one hand, and on the other hand It leads to the growth of investment and, as a result, more production and economic prosperity.As expected,the research results indicate the mutual dependence of insurance industry companiesSo that more than 85%of the investigated insurance companies have been able to enjoy a significant profit margin by creating a gap between the price and the final cost.Also the calculation results related to theLerner index based on theHall model show the information related to the coefficient of heterogeneity among insurance companies.Iran insurance has the highest Lerner index with a coefficient of0.565andAsia,Dana andPasargad insurances are in the next ranks with0.419,0.248and0.182respectively,

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