Sonnenholzner, Michael; Wambach, Achim - In: The journal of risk and insurance : the journal of the … 76 (2009) 2, pp. 323-341
We analyze a two-period competitive insurance market that is characterized by the simultaneous presence of moral hazard and adverse selection with regard to consumer time preferences. It is shown that there exists an equilibrium in which patient consumers use high effort and buy an insurance...