Test of Asymmetric Information in the Nepalese Reinsurance Market

Background: The imperfect information can cause an imbalance of power which may lead to market failure thus collection of information is very essential in today’s business world therefore, the availability of the correct and accurate information is very crucial for making sound economic decisions. Thus, information asymmetry has been a very pertinent issue where economic transaction takes place insurance market is not far behind. As, reinsurance provides huge indirect capital to the insurance industry, providing correct information’s like premium earned, claim by the insurer to the reinsurer’s for fair pricing of reinsurance premium along ensuring top rated reinsurance company remain in Nepalese insurance industry. Objectives: This study aims to examine whether there remains asymmetric information in Nepalese insurance market with reinsurer’s perspective in different portfolios such as fire, marine, motor, engineering and miscellaneous as well as combining all portfolio in aggregate. Methods: The study uses descriptive and causal relation research design. Further, the study uses secondary data of 14 nonlife insurance from 2008/09 to 2018/19 with 168 firm year observations Result: Results of the study revealed that that only in fire, marine and overall portfolios there exists strong asymmetric information. Rest of the portfolio like motor, engineering and miscellaneous there is no evidence of existence of asymmetric information. Conclusion: Existence of asymmetric information is mostly an inevitable part as one party always tries to avoid information to others for the sake of benefit. However, the existence of asymmetric information to a large extent may lead to unhealthy relations between the parties and may bring the cold war distortion of relations. Thus, the finding of the studies is beneficial to the Nepalese nonlife insurers as insurers need to provide correct and accurate information to the reinsures Implication: To cope with asymmetric information in the Nepalese insurance industry, this study provides strong evidence to provide correct and accurate information’s to the reinsurers else top rated reinsurers might withdraw their presence from the Nepalese market which will have adverse effect in the insurance industry.

Buy and Selling in the Perspective of Jahiliyah and Islam a Comparison Study a Review of Sharia Economic History

Buying and selling or trading in the term fiqh are called al-Ba'i which, according to etymology, means selling or replacing. The word al-Ba'i in Arabic is sometimes used for the understanding of his opponent, namely the word al-Syira (buy). Thus, the word al-Ba'i means selling, but also means buying. In terminology, buying and selling is an agreement to exchange objects or goods that have a good value between the two parties, one receives objects and the other receives them in accordance with an agreement or provision that has been justified and agreed upon. In the Qur'an, there are many statements that describe the life of the Arabs, including trade problems. Islam is very concerned about the problem of trade in this Arab nation by setting for them what they need. Many of the Prophet's hadith mention the legal issues of buying and selling, monopoly, accounts payable, profits, etc. Jahiliyah Arabs have a market as a center of trade. Usury is one type of economic transaction that is actually carried out and developed in Arab society. In Islam, buying and selling if it contains usury, illicit goods, reduces scales, and by force.

The Role of Leadership Level in College Students’ Decision-Making: Evidence From Event-Related Potential Analysis

Although risk decision-making plays an important role in leadership practice, the distinction in behavior between humans with differing levels of leadership, as well as the underlying neurocognitive mechanisms involved, remain unclear. In this study, the Ultimatum Game (UG) was utilized in concert with electroencephalograms (EEG) to investigate the temporal course of cognitive and emotional processes involved in economic decision-making between high and low leadership level college students. Behavioral results from this study found that the acceptance rates in an economic transaction, when the partner was a computer under unfair/sub unfair condition, were significantly higher than in transactions with real human partners for the low leadership group, while there was no significant difference in acceptance rates for the high leadership group. Results from Event-Related Potentials (ERP) analysis further indicated that there was a larger P3 amplitude in the low leadership group than in the high leadership group. We concluded that the difference between high and low leadership groups was at least partly due to their different emotional management abilities.

Why and when beliefs change: A multi-attribute value-based decision problem

Why people do or do not change their beliefs has been a long-standing puzzle. Sometimes people hold onto false beliefs despite ample contradictory evidence; sometimes they change their beliefs without sufficient reason. Here, we propose that the utility of a belief is derived from the potential outcomes of holding it. Outcomes can be internal (e.g., positive/negative feelings) or external (e.g., material gain/loss), and only some are dependent on belief accuracy. Belief change can then be understood as an economic transaction, in which the multidimensional utility of the old belief is compared against that of the new belief. Change will occur when potential outcomes alter across attributes, for example due to changing environments, or when certain outcomes are made more or less salient.

A Just Weight and Measure: Embodied Economics and the Relationship between Worship and Economic Transaction

The concept of a ‘just weight and measure’ within the Bible is one that has insightful value for Christian ethics and economic transactions. Considering that in many situations law and judicial systems within Western society are not capable of completely constraining unethical economic transactions, what society requires are alternative motivations to enact ethical economic transactions. This article is focused on proposing a possible motivation for Christians considering the ever-growing complexities within the marketplace. It draws on insights on the concept of a ‘just weight and measure’ in Deuteronomy and its conceptual use within the books of the eighth-century prophets. A primary insight that is highlighted is the relationship between the unethical economic transactions in eighth-century Israel and God's rejection of their cultic services. When applied analogically to contemporary contexts, lessons can be gleaned from the concept of a ‘just weight and measure’ for Christian ethical economic transactions.

Alternatives to Punishment: The power to annul an economic exchange promotes self- rather than other-regarding preferences in fairness and trust games

Fairness and trust appraisals that engender economic exchange rely on thoughts about another person’s mind to satisfy self- (profit maximising) and other-regarding (social motives) preferences. Punishment should promote fairness and trust within economic exchange, guarding against free-riding and trust violations, but depends on other-regarding preferences concerned with the violator. Here, we explore an alternative to punishment that may instead promote self-regarding preferences—the opportunity for the decision-maker to annul (veto) the economic transaction. We test this veto approach by having participants assume the role of investor(s) in modified versions of the public goods (Studies one and three) and trust games (Studies two and four). Across four studies both online and in laboratory with two economic games, investor(s) could veto a transaction—annul a previous exchange—if the return from the other player(s) was deemed unsatisfactory. We find that this manipulation increased investment by the investor(s), consistent with games where second-party punishment is possible. Moreover, self-regarding preferences predicted veto behaviour, while other-regarding preferences predicted punishment behaviour. We argue that this veto approach can be an alternative to punishment that can safe-guard fairness and trust during economic exchange.

The Cultural Food Dynamic in Ireland

Decision making with regards to food choice can be traditionally viewed as an economic transaction, whereby consumers make a choice of which foods they would like to purchase and consume within the framework of how much disposable income they have at any particular time. However, within this framework, research has shown that there is a balance that consumers aim to achieve between the hedonistic qualities of the food and the perceived effects it may have on their health. Consequently, one area that is of significant importance is the concept of how food risks are perceived and how this perception affects the decision- making process. Research has indicated that Irish food consumers use a set of heuristic decision-making tools in order to assist them in making food choices for themselves and their families. These decision-making tools are evoked irrespective of age, gender or social class. This has led to concern (despite numerous health promotion and media campaigns) regarding the national food diet, with imperfections in consumption observed in an increase in obesity, nutritional imbalances and chronic ill health which expose individuals to medical conditions such as cancer and heart disease. The increase risks associated with these are prevalent in Ireland and for many measures Irish consumers rank poorly with other countries in Europe. Although the food choices are predicated by these decision-making tools there are reflections of previous historical dietary choices that persist within the diets pursued today by the majority of Irish consumers. This in addition to the effects of acculturation following recent changes in the demographic structure and the growth global networks for information flow and exchange has resulted in a dynamic food environment with “nutrition echoes” observed in the choices people make.

KAJIAN SPIRIT OF PLACE PADA PASAR LEGI KOTAGEDE YOGYAKARTA SEBAGAI KARAKTER PASAR TRADISIONAL

ABSTRAK. Pasar tradisional menjadi ruang transaksi ekonomi dengan tradisi tawar menawar antara penjual dan pembeli. Sebuah penelitian menyebutkan bahwa kearifan lokal masyarakat Kotagede berupa pendidikan atau cara belajar “srawung” salah satunya adalah Pasar, oleh karena itu penelitian ini berfokus pada Pasar Legi Kotagede untuk membuktikan pernyataan tersebut. Tujuan dari penelitian untuk mengidentifikasi srawung sebagai Spirit of Place pada Pasar Legi Kotagede. Untuk membuktikan bahwa hal tersebut merupakan keunikan khas Pasar Legi Kotagede maka perlukan pembanding. Hasil penelitian ternyata penataan layout, zonasi pedagang, toleransi, keakraban dan kerjasama antara pedagang maupun pembeli merupakan faktor-faktor yang membentuk Spirit of Place pada pasar tradisional. Kata Kunci: karakter Pasar Tradisional, Kearifan lokal, Pasar Legi Kotagede, Spirit of Place ABSTRACT. Traditional markets are an economic transaction space with a tradition of bargaining between sellers and buyers. A study states that the local wisdom of the Kotagede community in the form of education or how to learn "srawung" one of which is the Market. Therefore this research focuses on the Pasar Legi Kotagede to prove the statement. The purpose of this research is to identify srawung as a Spirit of Place in Kotagede Legi Market. To confirm that this is the uniqueness of the Pasar Legi Kotagede, we need a comparison. The study results turned out to be layout arrangement, trader zoning, tolerance, familiarity, and cooperation between traders and buyers are the factors that make up the Spirit of Place in traditional markets. Keywords: Character of Traditional Market, Local Wisdom, Pasar Legi Kotagede, Spirit of Place