Saulo, Helton; Leao, Jeremias - In: Economics Bulletin 31 (2011) 3, pp. 2066-2074
This paper addresses the problem of multiple equilibria in markets with adverse selection. Akerlof (1970) identified an unique equilibrium of the total market failure under adverse selection. Posterioly, Wilson (1979, 1980) argued that the presence of adverse selection may lead to multiple...