Biais, Bruno; Gollier, Christian - Risk and Insurance Archive - 1994
In this paper, we reconsider the Rothschild-Stiglitz equilibrium of an insurance market under adverse selection. We … provide complementary insurance have some information on their own. There are two ways by which complementary insurers can get … additional information. First, primary insurers can deny insurance to some consumers, thereby signalling their own information to …