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Competitive Failures in Insurance Markets: Theory and Policy Implications (CESifo Seminar Series)

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 | #3058317 in eBooks |  2006-06-16 |  2006-06-16 | File type: PDF

||About the Author|Pierre-André Chiappori is Professor of Economics at Columbia University.

Christian Gollier is Professor of Economics at the University of Toulouse.

Risk sharing is a cornerstone of modern economies. It is valuable to
risk-averse consumers and essential for investment and entrepreneurs. The standard
economic model of risk exchange predicts that competition in insurance markets will
result in all individual risks being insured--that all diversifiable risks in the
economy will be covered through mutual risk-sharing arrangements--but ...

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