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Non-exclusivity and adverse selection: An application to the annuity market

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  • Agar Brugiavini

    (Department of Economics, University Of Venice Ca� Foscari)

  • Gwena�l Piaser

    (Department of Economics, University of Venice Ca� Foscari)

Abstract

Using a common agency framework, we characterize possible equilibria when annuities contracts are not exclusive. We discuss theoretical and empirical implications of these equilibria. First, we show that at equilibrium prices are not linear. Then we characterize an equilibrium. We provide conditions for existence and show that this equilibrium is efficient.

Suggested Citation

  • Agar Brugiavini & Gwena�l Piaser, 2006. "Non-exclusivity and adverse selection: An application to the annuity market," Working Papers 2006_39, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2006_39
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    References listed on IDEAS

    as
    1. Alberto Bisin & Danilo Guaitoli, 2004. "Moral Hazard and Nonexclusive Contracts," RAND Journal of Economics, The RAND Corporation, vol. 35(2), pages 306-328, Summer.
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    3. Attar Andrea & Campioni Eloisa & Piaser Gwenael, 2006. "Multiple Lending and Constrained Efficiency in the Credit Market," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 6(1), pages 1-37, October.
    4. Bruno Biais & David Martimort & Jean‐Charles Rochet, 2013. "Corrigendum to "Competing Mechanisms in a Common Value Environment"," Econometrica, Econometric Society, vol. 81(1), pages 393-406, January.
    5. Edmund Cannon & Ian Tonks, 2002. "The Behaviour of UK Annuity Prices from 1972 to the Present," CeRP Working Papers 25, Center for Research on Pensions and Welfare Policies, Turin (Italy).
    6. Menahem E. Yaari, 1965. "Uncertain Lifetime, Life Insurance, and the Theory of the Consumer," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(2), pages 137-150.
    7. Pierre André Chiappori & Bernard Salanié, 2002. "Testing Contract Theory: A Survey of Some Recent Work," CESifo Working Paper Series 738, CESifo.
    8. Amy Finkelstein & James Poterba, 2002. "Selection Effects in the United Kingdom Individual Annuities Market," Economic Journal, Royal Economic Society, vol. 112(476), pages 28-50, January.
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    Keywords

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    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • G1 - Financial Economics - - General Financial Markets

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