We consider a model of competitive insurance markets involving both asymmetric information and ambiguity about the … accident probability. We show that there can exist a full-insurance pooling equilibrium. We also present an example where an … constraint and allows low risks to buy more insurance. Higher ambiguity also deteriorates the low risks' expected utility from …

This paper characterizes the optimal information structure in competitive insurance markets with adverse selection. A … regulator assigns ratings to individuals according to their risk characteristics, insurers offer fixed insurance contracts to … system. We examine implications for government regulations of insurance markets. …

by sharing gains from trade with high-risk customers when low risks are predominant in the insurance pool. However …

We analyze the effect of ambiguous loss probabilities on competitive insurance markets with asymmetric information. We …

We examine insurance markets with two types of customers: those who regret suboptimal decisions and those who don.t. In … positive correlation between the amount of insurance coverage and risk type, as in the standard economic models of adverse … selection, but there also exist separating equilibria that predict a negative correlation between the amount of insurance …

This paper reconsiders the Rothschild-Stiglitz insurance market model by information theory. The seminal work by … Rothschild and Stiglitz (1978) has become one of the standard models of insurance markets. However, there are a couple of issues … indifference curves of the insurance consumers' utility functions which could be difficult to obtain empirically. This paper …

communication of purchase information or non-communication which exhibits a lemon effect (low-risk purchase no insurance …

We extend the seminal Rothschild and Stiglitz (1976) model on competitive insurance markets with asymmetric information …

to a catastrophe. Distinct from the existing literature on insurance cycles, we model optimal contracting by competitive … insurance cycle …

We study a competitive insurance market in which insurers have an imperfect informative advantage over policyholders … levels, the persistent profitability and the pooling of risk observed in some insurance markets. Furthermore, we find that a … lower market concentration may entail an increase in insurance premia. …