The existence of the Miyazaki-Wilson-Spence equilibrium with continuous type distributions

We prove the existence of an equilibrium in competitive markets with adverse selection in the sense of Miyazaki (1977), Wilson (1977), and Spence (1978) when the distribution of unobservable risk types is continuous. Our proof leverages the finite-type proof in Spence (1978) and a limiting argument akin to Hellwig (2007)'s study of optimal taxation.

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Year of publication:	2018
Authors:	Gemmo, Irina ; Kubitza, Christian ; Rothschild, Casey G.
Publisher:	Frankfurt a. M. : Goethe University Frankfurt, International Center for Insurance Regulation (ICIR)
Subject:	asymmetric and private information \| insurance market \| adverse selection \| equilibrium

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Series:	ICIR Working Paper Series ; 32/18
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1041094868 [GVK] hdl:10419/187432 [Handle] RePEc:zbw:icirwp:3218 [RePEc]
Classification:	D82 - Asymmetric and Private Information ; G22 - Insurance; Insurance Companies ; D41 - Perfect Competition
Source:	EconStor

Persistent link: https://www.econbiz.de/10011936021