We study the Rothschild-Stiglitz model of competitive insurance markets with endogenous information disclosure by both … supplemental (undisclosed and nonexclusive) contract that brings the high risk individual to full insurance (at his own odds). We …

calibrated model of employer-sponsored health insurance, we show that the risk adjustment commonly used by employers to offset …

Health insurance is increasingly provided through managed competition, in which subsidies for consumers and risk …

Standard theories of insurance, dating from Rothschild and Stiglitz (1976), stress the role of adverse selection in … explaining the decision to purchase insurance. In these models, higher risk people buy full or near-full insurance, while lower … insurance markets, in many others, it is the lower risk individuals who have more insurance coverage. If the standard model is …

This paper analyzes optimal and equilibrium insurance contracts under adverse selection and moral hazard, comparing …-risk type gets more stringent (i.e. when low risk individuals shirk with lower levels of insurance). We also show that a pooling … accident probability) or when the provision of insurance is non-exclusive (i.e. individuals can purchase insurance from more …

This review article, which was solicited by the Geneva Risk and Insurance Review, surveys work that has been done using … an empirical framework for analyzing selection in insurance markets developed by Einav, Finkelstein, and Cullen (2010 … across an array of settings in both insurance and credit markets. We also discuss some of the useful extensions to the …

insurance under adverse selection to show that such "initial conditions" can indeed matter. When firms are price-takers, the …

We present a graphical framework for analyzing both theoretical and empirical work on selection in insurance markets … insurance allocation, social welfare, and public policy. We then discuss several important extensions to this classical … treatment that are necessitated by important real world features of insurance markets and which can be easily incorporated in …

This paper reviews and evaluates the empirical literature on adverse selection in insurance markets. We focus on … empirical work that seeks to test the basic coverage-risk prediction of adverse selection theory--that is, that policyholders … who purchase more insurance coverage tend to be riskier. The analysis of this body of work, we argue, indicates that …