A Price Competitive Model of Oligopoly Insurance Market with Different Service Quality

On the basis of domestic and overseas scholars´ researches, this paper supposes that consumers have different preferences to wealth utility and service utility and chooses service efficiency and after-sale service as the parameters which can importantly sign the service quality of insurance firms. In this premise, a price competitive model under the condition of service quality differentiation of the oligarchs in insurance market is established. By deducing its Nash equilibrium strategies, the conclusion that when the oligarchs face the same loss probability, the rate of the firm which has better service quality is also higher than the other, was drawn. And on that basis, the effects which the difference in after-sale service quality and the loss probability and so on have on the insurance rate are analyzed and discussed.