defined insurance and non-insurance markets based on the initial loss size, we develop theory to show that insurers with buyer … power have incentives to create insurance markets. Insurer competition will push their profits to zero but markets do not … our theory and find support. Monopolistic insurer-subjects in non-insurance markets increase loss sizes to establish …

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

There is a general presumption that competition is a good thing. In this paper we show that competition in the … insurance markets can be bad when there is adverse selection. Using the dual theory of choice under risk, we are able to fully … competition if and only if competition leads to market travelling. When there are a continuum of types the efficiency of …