We provide a characterization of an optimal insurance contract (coverage schedule and audit policy) when the monitoring procedure is random. When the policyholder exhibits constant absolute risk aversion, the optimal contract involves a positive indemnity payment with a deductible when the...

We consider a general equilibrium model under imperfect competition. Firms have constantreturns, they are price taker in the input market and compete à la Cournot in theproduct market. We assume a representative consumer exists. We show that an increase inthe number of firms of a given market...

This note shows that a general oligopolistic equilibrium (GOLE), a notionrecently introduced in the literature by Neary, may be Pareto-efficient. Consequently,at a GOLE, the allocation of resources can be identical to thatof a competitive equilibrium. We also propose a characterization of...