This paper considers a competitive insurance market under moral hazard and adverse selection, in which preventive efforts and self-protection costs are unobservable by insurance companies. Under reasonable assumptions, the conclusions of Rothschild and Stiglitz (1976) are preserved in our...

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...

We study horizontal partial acquisitions in an oligopolistic industry in the absence of synergies.Contrary to existing results, we …nd that a dominant shareholder may choose to acquire sharesin a competitor although the aggregate pro…t of the group of …rms under his control, and eventhe...