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It seems like insurance companies should be liable for massive damages for DUIs (raising rates), but offer the option to "voluntarily" install a breathalyzer to
by satyrnein 5y ago
It seems like insurance companies should be liable for massive damages for DUIs (raising rates), but offer the option to "voluntarily" install a breathalyzer to get lower rates. That feels like the American way.
- mindslight 5y agoThat's just authoritarianism with extra steps.
- satyrnein 5y agoArguably it's fixing externalities by correctly pricing risk.
- mindslight 5y agoPerfectly pricing risk implies omniscience (ie totalitarianism), which means that pricing risk is not an unquestionably good thing. Furthermore, markets can never be fully efficient, as that would imply P == NP. And so what is actuarially considered and ignored is itself a public policy choice. Stating things in the passive terminology of "the market" is just obfuscating that choice.