Allard, Marie; Cresta, Jean-Paul; Rochet, Jean-Charles - In: The Geneva Risk and Insurance Review 22 (1997) 2, pp. 103-120
In the Rothschild-Stiglitz [1976] model of a competitive insurance market with adverse selection, pooling equilibria cannot exist. However in practice, pooling contracts are frequent, notably in health insurance and life insurance. This is due to the fact that distribution costs are...