The paper develops a design of optimal Bonus-Malus System （BMS） based on exact equitable credibility,in which the relative error function is taken as loss function. In BMS,both the frequency and the severity components are considered. This design is compared with traditional BMS derived from classical squared-error loss function.
This article discusses feasibility conditions in mathematical programs with equilibrium constraints （MPECs）. The authors prove that two sufficient conditions guarantee the feasibility of these MPECs. The authors show that the two feasibility conditions are different from the feasibility condition in [2, 3], and show that the sufficient condition in [3] is stronger than that in [2].
