We provide an experimental analysis of competitive insurance markets with adverse selection. Our parameterized version … of the lemons' model (Akerlof 1970) in the insurance context predicts total crowding out of low-risks when insurers offer … a single full insurance contract. The therapy proposed by Rothschild and Stiglitz (1976) to solve this major …

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

insurance markets can be bad when there is adverse selection. Using the dual theory of choice under risk, we are able to fully … competition is less trivial. In effect monopoly is shown to provide better insurance but at the cost of driving out some agents …

A key feature of insurance markets is that the cost of selling insurance policies is contingent upon not only the … number of policies sold but to whom they are sold. This differentiates insurance markets from conventional markets and admits … categorization data for the Washington state non-standard private passenger automobile liability insurance market. This unique data …

] (RS) model of competitive insurance markets, provided costs are bounded. However, equilibrium predictions are sensitive to … converges. We present sufficient conditions under which AG equilibrium exists when cost is unbounded. For simple insurance … markets, we derive a condition which is necessary and sufficient for existence: surplus from insurance must increase faster …

A large empirical literature found that the correlation between insurance purchase and ex post realization of risk is … insurance a la Akerlof (1970), Pauly (1974) and Rothschild and Stiglitz (1976) where consumers have one … in a negative correlation in equilibrium between insurance coverage and ex post realization of risk. We show that if the …

defined insurance and non-insurance markets based on the initial loss size, we develop theory to show that insurers with buyer … our theory and find support. Monopolistic insurer-subjects in non-insurance markets increase loss sizes to establish … markets with small initial loss sizes, insurers may try to raise these in order to create demand for insurance. After having …