Ramsay, Colin M.; Oguledo, Victor I.; Pathak, Priya - In: Insurance: Mathematics and Economics 52 (2013) 3, pp. 606-614
We consider the traditional model of an insurance market that consists of high-risk and low-risk individual customers who are identical except for their accident probabilities. Though insurers know the values of the high-risk and low-risk accident probabilities, each individual customer’s...