De Feo, Giuseppe; Hindriks, Jean - In: Journal of Economic Behavior & Organization 106 (2014) C, pp. 213-226
insurance markets can be bad and that adverse selection is in general worse under competition than under monopoly. The reason is … that monopoly can exploit its market power to relax incentive constraints by cross-subsidization between different risk … monopoly is shown to provide better coverage to those buying insurance but at the cost of limiting participation to insurance …