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Selection in Insurance Markets : Theory and Empirics in Pictures

Einav, Liran - 2011

We present a graphical framework for analyzing both theoretical and empirical work on selection in insurance markets. We begin by using this framework to review the "textbook" adverse selection environment and its implications for insurance allocation, social welfare, and public policy. We then...

Persistent link: https://www.econbiz.de/10012461934

Testing for Adverse Selection in Insurance Markets

Cohen, Alma - 2009

empirical work that seeks to test the basic coverage-risk prediction of adverse selection theory--that is, that policyholders …

Persistent link: https://www.econbiz.de/10012463063

Optimal Taxation with Endogenous Insurance Markets

Golosov, Mikhail - 2005

We study optimal tax policy in a dynamic private information economy with endogenous private markets. We characterize efficient allocations and competitive equilibria. A standard assumption in the literature is that trades are observable by all agents. We show that in such an environment the...

Persistent link: https://www.econbiz.de/10012467500

Characterization, Existence, and Pareto Optimality in Insurance Markets with Asymmetric Information with Endogenous and Asymmetric Disclosures : Revisiting Rothschild-Stiglitz

Stiglitz, Joseph E. - 2018

We study the Rothschild-Stiglitz model of competitive insurance markets with endogenous information disclosure by both firms and consumers. We show that an equilibrium always exists, (even without the single crossing property), and characterize the unique equilibrium allocation. With two types...

Persistent link: https://www.econbiz.de/10012453009

Measuring Ex-Ante Welfare in Insurance Markets

Hendren, Nathaniel - 2018

Revealed-preference measures of willingness to pay (WTP) capture the value of insurance only against the risk that remains when choosing insurance. This paper provides a method to translate observed market WTP and cost curves into an ex-ante value of insurance that can analyze the impact of...

Persistent link: https://www.econbiz.de/10012453244

Deriving Risk Adjustment Payment Weights to Maximize Efficiency of Health Insurance Markets

Layton, Timothy J. - 2016

Risk adjustment of payments to health plans is fundamental to regulated competition among private insurers, which …

Persistent link: https://www.econbiz.de/10012456038

Imperfect Competition in Selection Markets

Mahoney, Neale - 2014

subprime auto lending calibrated to Einav, Jenkins and Levin (2012), realistic levels of competition among lenders generate a … significant oversupply of credit, implying greater market power is desirable. We build a model of symmetric imperfect competition …-theoretic reasoning to provide a general analysis of the interaction between selection and imperfect competition. We use the same logic to …

Persistent link: https://www.econbiz.de/10012458255

Equilibrium in Competitive Insurance Markets with Moral Hazard

Arnott, Richard - 1991

This paper examines the existence and nature of competitive equilibrium with moral hazard. The more insurance an individual has, the less care will he take. Consequently, insurance firms attempt to restrict their clients' aggregate insurance purchases. If individuals' aggregate insurance...

Persistent link: https://www.econbiz.de/10012475432

Multidimensional Private Information, Market Structure and Insurance Markets

Fang, Hanming - 2016

A large empirical literature found that the correlation between insurance purchase and ex post realization of risk is often statistically insignificant or negative. This is inconsistent with the predictions from the classic models of insurance a la Akerlof (1970), Pauly (1974) and Rothschild and...

Persistent link: https://www.econbiz.de/10012455907

Bilateral Information Disclosure in Adverse Selection Markets with Nonexclusive Competition

Stiglitz, Joseph E. - 2020

We study insurance markets with nonexclusive contracts, introducing bilateral endogenous information disclosure about insurance sales and purchases by firms and consumers. We show that a competitive equilibrium exists under remarkably mild conditions, and characterize the unique equilibrium...

Persistent link: https://www.econbiz.de/10012481998

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