Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/187432 
Year of Publication: 
2018
Series/Report no.: 
ICIR Working Paper Series No. 32/18
Publisher: 
Goethe University Frankfurt, International Center for Insurance Regulation (ICIR), Frankfurt a. M.
Abstract: 
We prove the existence of an equilibrium in competitive markets with adverse selection in the sense of Miyazaki (1977), Wilson (1977), and Spence (1978) when the distribution of unobservable risk types is continuous. Our proof leverages the finite-type proof in Spence (1978) and a limiting argument akin to Hellwig (2007)'s study of optimal taxation.
Subjects: 
asymmetric and private information
insurance market
adverse selection
equilibrium
JEL: 
D82
G22
D41
Document Type: 
Working Paper

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