We propose and estimate a model of demand and supply of annuities. To this end, we use rich data from Chile, where annuities are bought and sold in a private market via a two-stage process: first-price auctions followed by bargaining. We model firms with private information about costs and...

We propose and estimate a model of demand and supply of annuities. To this end, we use rich data from Chile, where annuities are bought and sold in a private market via a two-stage process: first-price auctions followed by bargaining. We model firms with private information about costs and...

In this letter we show evidence that the introduction of an electronic platform in the Chilean annuity market in 2004 exacerbated adverse selection. Male annuitants who retired after 2004 live around two years longer than non-annuitants, while before the difference was smaller or non...