We take a dynamic perspective on insurance markets under adverseselection and study a generalized Rothschildand … dynamic contracts. An unconditional dynamiccontract has insurance companies offeringcontracts where the terms of the contract … on individualpast performance (like in car insurances). Weinvestigate whether allowing insurance companies to offer …

We offer a theory of how the combination of budget constraints and insurance drives up prices. A natural context for … our theory is the health care market, where drug prices can be very high. Our model predicts that monopoly prices for …