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Journal articles (2017), Economics Letters, 152, pp. 5-8

Nash Equilibrium in Competitive Insurance

I formalize a rather stylized insurance market with adverse selection as a standard duopoly. I formally specify demand functions and profits and prove that a Nash equilibrium in pure strategies exists if and only if the well-known Rothschild-Stiglitz allocation is efficient. Link to the article

DOSIS, A. (2017). Nash Equilibrium in Competitive Insurance. Economics Letters, 152, pp. 5-8.

Keywords : #Insurance, #Adverse-selection, #Duopoly, #Contracts, #Nash-equilibrium