Lacker, Jeffrey M.; Weinberg, John A. - In: The Geneva Risk and Insurance Review 24 (1999) 1, pp. 5-17
We reexamine the canonical adverse selection insurance economy first studied by Rothschild and Stiglitz [1976]. We define blocking in a way that takes private information into account and define a coalition-proof correspondence as a mapping from coalitions to allocations with the property that...