Community rating is a policy that mandates uniform premium regardless of the risk factors. In this paper, our focus narrows to the single contract interpretation wherein we establish a theoretical framework for community rating using Stiglitz's (1977) monopoly model in which there is a continuum of agents. We exhibit profitability conditions and show that, under mild regularity conditions, the optimal premium is unique and satisfies the inverse elasticity rule. Our numerical analysis, using realistic parameter values, reveals that under regulation, a 10% increase in indemnity is possible with minimal impact on other variables.

翻译：社区评级是一项政策，要求无论风险因素如何，均统一收取保费。本文将范围缩小至单一合同解释，利用斯蒂格利茨（1977）的垄断模型（其中存在连续统代理人）为社区评级建立了理论框架。我们展示了盈利条件，并证明在温和的规律性条件下，最优保费是唯一的，且满足逆弹性法则。基于实际参数值的数值分析表明，在监管条件下，赔偿金可实现10%的增长，且对其他变量的影响极小。