Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35822
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dc.contributor.authorvon Siemens, Ferdinanden_US
dc.contributor.authorKosfeld, Michaelen_US
dc.date.accessioned2009-05-07en_US
dc.date.accessioned2010-07-07T11:58:51Z-
dc.date.available2010-07-07T11:58:51Z-
dc.date.issued2009en_US
dc.identifier.piurn:nbn:de:101:1-20090513220en_US
dc.identifier.urihttp://hdl.handle.net/10419/35822-
dc.description.abstractRothschild and Stiglitz (1976) show that there need not exist a competitive equilibrium in markets with adverse selection. Building on their framework we demonstrate that externalities between agents - an agent's utility upon accepting a contract depends on the average type attracted by the respective principal - can solve the equilibrium existence problem, even when the size of the externalities is arbitrarily small. Our result highlights the degree of control a principal has over the attractiveness of his contracts as an important feature for equilibrium existence, thereby offering a new perspective on existing theories of competition in markets with adverse selection.en_US
dc.language.isoengen_US
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen_US
dc.relation.ispartofseries|aIZA discussion papers |x4125en_US
dc.subject.jelD82en_US
dc.subject.jelD86en_US
dc.subject.ddc330en_US
dc.subject.keywordAsymmetric informationen_US
dc.subject.keywordcompetitionen_US
dc.subject.keywordadverse selectionen_US
dc.subject.keywordexternalityen_US
dc.subject.stwMarktmechanismusen_US
dc.subject.stwWettbewerben_US
dc.subject.stwAsymmetrische Informationen_US
dc.subject.stwAdverse Selectionen_US
dc.subject.stwExterner Effekten_US
dc.subject.stwVersicherungsökonomiken_US
dc.subject.stwTheorieen_US
dc.titleNegative externalities and equilibrium existence in competitive markets with adverse selectionen_US
dc.type|aWorking Paperen_US
dc.identifier.ppn599383712en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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