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Paying for Health Insurance : The Tradeoff between Competition and Adverse Selection

Cutler, David M. - 1996

This paper uses data on health insurance choices by employees of Harvard University to examine the effect of alternative pricing rules on market equilibrium. In the mid-1990s, Harvard moved from a system of subsidizing more expensive insurance to a system of contributing an equal amount to each...

Persistent link: https://www.econbiz.de/10012473037

Fighting for the best, losing with the rest : the perils of competition in entrepreneurial finance

Hernández, Juan; Wills, Daniel - 2024

giving more to all entrepreneurs. In equilibrium, competition for the best entrepreneurs forces intermediaries to offer …. Competition among financial intermediaries always forces them to fund projects with negative expected returns both from a private … scale. The three main features of our framework (competition, adverse selection, and limited liability) are necessary to get …

Persistent link: https://www.econbiz.de/10014537358

Non-Exclusive Competition in the Market for Lemons

Attar, Andrea; Mariotti, Thomas; Salanié, François - 2009

We consider an exchange economy in which a seller can trade an endowment of a divisible good whose quality she privately knows. Buyers compete in menus of non-exclusive contracts, so that the seller may choose to trade with several buyers. In this context, we show that an equilibrium always...

Persistent link: https://www.econbiz.de/10014199733

Competition and Adverse Selection in the Small-Dollar Loan Market : Overdraft versus Payday Credit

Melzer, Brian; Morgan, Donald P. - 2010

We find that competition from payday lenders leads depository institutions to raise overdraft fees and reduce the … illuminate competition and pricing frictions in the large, yet largely unstudied, small-dollar loan market …

Persistent link: https://www.econbiz.de/10014204039

Does Competitive Pricing Cause Market Breakdown under Extreme Adverse Selection?

Mailath, George J.; Nöldeke, Georg - 2007

We study market breakdown in a finance context under extreme adverse selection with and without competitive pricing. Adverse selection is extreme if for any price there are informed agent types with whom uninformed agents prefer not to trade. Market breakdown occurs when no trade is the only...

Persistent link: https://www.econbiz.de/10014225111

Non-Exclusive Competition Under Adverse Selection

Attar, Andrea - 2011

. Buyers compete by posting arbitrary menus of contracts. Competition is non-exclusive in that the seller can simultaneously …

Persistent link: https://www.econbiz.de/10013127485

Strategic Adverse Selection : Raising Competitor Costs in the Insurance Industry

Shaver, Kevin - 2014

, a two stage spatial model of Bertrand price competition is specified, with an endogenously determined rule for sharing …

Persistent link: https://www.econbiz.de/10014145136

Uncertainty, Pay for Performance and Adverse Selection in a Competitive Labor Market

Balmaceda, Felipe - 2004

This paper develops a new rationale for the emergence of pay-for-performance contracts. The labor market is competitive, workers are risk averse and firms risk neutral. The paper shows that in stable environments more productive workers self-select into pay-for-performance jobs because risk is...

Persistent link: https://www.econbiz.de/10014028641

Price caps and efficiency in markets with adverse selection

Dosis, Anastasios - In: Journal of mathematical economics 99 (2022), pp. 1-11

Persistent link: https://www.econbiz.de/10013365440

Coinsurance vs. co-payments : reimbursement rules for a monopolistic medical product with competitive health insurers

Cremer, Helmuth; Lozachmeur, Jean-Marie - In: Journal of health economics 84 (2022), pp. 1-11

Persistent link: https://www.econbiz.de/10013400039