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

Economies with asymmetric information are encompassed by an extension of the model of general competitive equilibrium …

-dimensional index of her preferences and asset quality. This multiplicity does not rely on off-the-equilibrium path beliefs and so is … not amenable to standard signaling game refinements. The semi- separating equilibrium may be not Pareto efficient, even if … it is not Pareto dominated by any other equilibrium. Instead, efficient allocations may require transfers across …

insurance sales and purchases by firms and consumers. We show that a competitive equilibrium exists under unusually mild … conditions, and characterize the unique equilibrium outcome. With two types of consumers the outcome is particularly simple … own odds). We show that this outcome is extremely robust and constrained Pareto efficient. Asymmetric equilibrium …