Equilibrium in Competitive Insurance Markets: The Welfare Economics of Moral Hazard
Richard Arnott and
Joseph Stiglitz
Working Paper from Economics Department, Queen's University
Abstract:
This paper examines the existence and properties of competitive equilibrium in economies with moral hazard. The nature of competitive equilibrium depends on whether insurers can observe an insured's total purchases of insurance. If insurers can observe this, an individual will purchase all his insurance from a single agent, and the contract will specify the price but also ration the quantity. If insurers cannot observe this, then a competitive equilibrium may not exist. Equilibrium may be characterized by random insurance.
Pages: 43
Date: 1982
References: Add references at CitEc
Citations: View citations in EconPapers (3)
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:483
Access Statistics for this paper
More papers in Working Paper from Economics Department, Queen's University Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().