Browsing Working Papers (ECON) by Author "Nilssen, Tore"
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On the Dynamics of Competitive ScreeningLund, Diderik; Nilssen, Tore (København, 2003)[More information][Less information]
Abstract: Abstract We discuss the existence of a pooling equilibrium in a two-period model of an insurance market with asymmetric information. We solve the model numerically. We pay particular attention to the reasons for non-existence in cases where no pooling equilibrium exists. In addition to the phenom- enon of cream skimming emphasized in earlier literature, we here point to the the importance of the opposite: dregs skimming, whereby high-risk consumers are proÞtably detracted from the candidate pooling contract. URI: http://hdl.handle.net/10398/7596 Files in this item: 1
wpec012003.pdf (380.8Kb)
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