Etro, Federico - In: Rivista Internazionale di Scienze Sociali 112 (2004) 1, pp. 27-46
Does asymmetric information matter in insurance markets? Recent evidence on the automobile insurance market suggests not, rejecting the separating equilibnum of the Rothschild-Stiglitz model. However, I show that a two-penod version of that model can sustain a pooling equilibrium with experience...