Economies with asymmetric information are encompassed by an extension of the model of general competitive equilibrium … anonymous markets are viable. But, for a generic economy, competitive equilibrium allocations are constrained suboptimal: there …

We prove the existence of an equilibrium in competitive markets with adverse selection in the sense of Miyazaki (1977 …

in a negative correlation in equilibrium between insurance coverage and ex post realization of risk. We show that if the … correlation property in equilibrium, unless there is a sufficiently high loading factor. If the insurance market is monopolistic … or imperfectly competitive, however, we show that it is possible to generate negative correlation property in equilibrium …

Riley (1979)'s reactive equilibrium concept addresses problems of equilibrium existence in competitive markets with … adverse selection. The game-theoretic interpretation of the reactive equilibrium concept in Engers and Fernandez (1987) yields … the Rothschild-Stiglitz (1976)/Riley (1979) allocation as an equilibrium allocation, however multiplicity of equilibrium …

in the spirit of Wilson (1977)’s ‘anticipatory equilibrium’ by introducing an additional stage in which initial contracts … can be withdrawn after observation of competitors’ contract offers. We show that an equilibrium always exists where … as equilibrium contracts. However, the second-best efficient WMS allocation is the unique equilibrium allocation under …

symmetric equilibrium always exists. Exact conditions under which the equilibrium involves mixed strategies are provided. The … mixed equilibrium features (i) cross-subsidization across risk levels, (ii) dependence of offers on the risk distribution …

information to allow for default. We show that, independently of the financial-informational structure, equilibrium exists. …

The rational expectations equilibrium (REE), as introduced in Radner (1979) in a general equilibrium setting à la Arrow …

information to allow for default. We show that, independently of the financial-informational structure, equilibrium exists. …