Bijlsma, Michiel; Boone, Jan; Zwart, Gijsbert - In: RAND Journal of Economics 45 (2014) 4, pp. 792-815
type="main" <p>We study optimal risk adjustment in imperfectly competitive health insurance markets when high-risk consumers are less likely to switch insurer than low-risk consumers. Insurers then have an incentive to select even if risk adjustment perfectly corrects for cost differences. To...</p>