De Donder, Philippe; Leroux, Marie-Louise; Salanié, … - 2022
Advantageous (or propitious) selection occurs when an increase in the premium of an insurance contract induces high … insurance demand are high. We then move to standard settings satisfying the single-crossing property and show that advantageous … face two mutually exclusive risks that are bundled together in a single insurance contract. We exemplify this last case …