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agents have private information on their true risk type. If the regulation is not too stringent, the equilibrium is … regulation is not too stringent, the equilibrium is separating in which a single insurer monopolizes the high risks while the …
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To limit price variations across consumers, the ACA requires that an insurance plan sold on the Health Insurance Marketplaces be uniformly priced across multiple counties within a geographic rating area. However, insurers’ service areas are not regulated by the ACA which could result in...
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