CESifo Seminar Series "Competitive Failures in Insurance Markets Theory and Policy Implications" edited by Pierre … essential for investment and entrepreneurs. The standard economic model of risk exchange predicts that competition in insurance … individuals; many environmental, catastrophic, and technological risks are not covered by insurance contracts. In this CESifo …

This paper demonstrates the existence of adverse selection in the group insurance market with no individual choice. We … provide evidence against the “conventional wisdom” that group insurance mitigates adverse selection because of the mixture of …