The present paper analyzes the demand for insurance when the insurer has incomplete information about types of potential customers. We assume that customers' risk preferences cannot be distinguished by the insurer. Therefore, the standard result in insurance economics that the insurer...

The present paper analyzes the demand for insurance when the insurer has incomplete information about types of potential customers. We assume that customers´ risk preferences cannot be distinguished by the insurer. Therefore, the standard result in insurance economics that the insurer...