De Feo, Giuseppe (contributor); Hindriks, Jean (contributor) - 2005
insurance market in the presence of adverse selection. Using the
benchmarkmodel of RothschildandStiglitz (1976), we contrast the … seemingly related argument:
the insurance market under adverse selection with subjective risk per-
ception. In these works, risk … on the e� ciency of competition
in the insurance market.
3 The two-type case
There are two types of risk. A proportion p …