Einav, Liran; Finkelstein, Amy; Cullen, Mark R. - 2008
estimate how insurer�s costs vary as
market participants endogenously respond to price. The slope of this estimated cost
curve … estimate the welfare costs of private information
in particular insurance markets, speci�cally annuities (Einav, Finkelstein … with selection is that �rms�costs depend on which consumers purchase their products.
As a result, insurer�s costs are …