Equilibrium in competitive insurance markets with ex ante adverse selection and ex post moral hazard
AbstractExistence of pure strategy equilibria is studied in insurance markets that exhibit both ex ante adverse selection of the Rothschild-Stiglitz-Wilson type, and ex post hidden information moral hazard. It is found that ex post moral hazard has two offsetting effects on the existence of equilibrium, and that in general it is difficult to say whether an equilibrium is more or less likely to exist.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 84 (2002)
Issue (Month): 2 (May)
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Web page: http://www.elsevier.com/locate/inca/505578
Other versions of this item:
- Jack, W., 1998. "Equilibrium in Competitive Insurance Markets with Ex Ante Adverse Slection and Ex Post Moral Hazard," Papers 340, Australian National University - Department of Economics.
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- I1 - Health, Education, and Welfare - - Health
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