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We study a monopoly insurance model with endogenous information acquisition. Through a continuous effort choice …
Persistent link: https://www.econbiz.de/10011084544
What are the welfare effects of a policy that facilitates for insurance customers to privately and covertly learn about … their accident risks? We endogenize the information structure in Stiglitz's classic monopoly insurance model. We first show …
Persistent link: https://www.econbiz.de/10011083449
Suppose an altruistic person - A - is willing to transfer resources to a second person - B - if B comes upon hard times. If B anticipates that A will act in this manner, B will save too little from both agents’ point of view. This is the Samaritan’s dilemma. The logic of the dilemma has been...
Persistent link: https://www.econbiz.de/10005497793