mechanism of d'Aspremont and Gérard-Varet is shown to implement an effi cient provision rule with budget balance. However, first … mechanism is independent of the stochastic specification within the class of specifications defined by the structure of the …-Groves mechanism converges to zero in probability when the number of participants becomes large. In the limit, with a continuum of …

priori unknown. The analysis is based on a mechanism design approach that imposes a requirement of robustness with respect to …

mechanism of d’Aspremont and Gérard-Varet is shown to implement an efficient provision rule with budget balance. However, first … mechanism is independent of the stochastic specification within the class of specifications defined by the structure of the …-Groves mechanism converges to zero in probability when the number of participants becomes large. In the limit, with a continuum of …

equity value of insurance firms. Solvency regulations, however, pose a second source of risk to equity value when the … implementation of such regulations randomly affects the return to underwriting but exhibits imperfect correlation with market … the conflicting effects of these strategies on firm equity, regulations adopted to reduce the solvency risk of insurers …