Frictions and Equilibria in Insurance Markets

Seminar

Departmental Seminar 2015-2016

Speaker

Yehuda John Levy

Date

16/11/2015 - 12:30 - 11:00Add To Calendar 2015-11-16 11:00:00 2015-11-16 12:30:00 Frictions and Equilibria in Insurance Markets We study insurance markets with multidimensional types, generalising the seminal work of Rothschild-Stiglitz. First, we extend several of the non-existence of Nash equilibria results to these richer environments. Second, we show that, when firms have market power, equilibria may exist. We establish a link between the distribution of consumer types and the level of market power necessary for equilibrium existence, thereby linking market stability to primitives of the consumer type distribution. Building 504, Room 011 אוניברסיטת בר-אילן - Department of Economics Economics.Dept@mail.biu.ac.il Asia/Jerusalem public

Place

Building 504, Room 011

Affiliation

University of Oxford

Abstract

We study insurance markets with multidimensional types, generalising the seminal work of Rothschild-Stiglitz. First, we extend several of the non-existence of Nash equilibria results to these richer environments.

Second, we show that, when firms have market power, equilibria may exist. We establish a link between the distribution of consumer types and the level of market power necessary for equilibrium existence, thereby linking market stability to primitives of the consumer type distribution.