Bijlsma, Michiel; Boone, Jan; Zwart, Gijsbert - C.E.P.R. Discussion Papers - 2011
We study optimal risk adjustment in imperfectly competitive health insurance markets when high-risk consumers are less … trade off between efficiency and consumer welfare. Reducing the difference in risk adjustment subsidies to high and low …-risk market. Finally, mandatory pooling can increase consumer surplus even further, at the cost of efficiency. …