On equilibria in insurance markets with asymmetric information [Elektronische Ressource] / Wanda Mimra

On Equilibria in InsuranceMarkets with AsymmetricInformationInauguraldissertationzurErlangung des DoktorgradesderWirtschafts- und Sozialwissenschaften Fakulta¨tderUniversit¨at zu Ko¨ln2011vorgelegt vonDipl.-Vw. (Int.) Wanda MimraausBerlinReferent: Prof. Achim Wambach, Ph.D.Korreferent: Prof. Dr. Patrick SchmitzTag der Promotion: 4. Februar 2011ContentsList of figures ixAcknowledgments x1 Introduction 12 Competitive Insurance Markets with Adverse Selection 52.1 The Rothschild-Stiglitz model . . . . . . . . . . . . . . . . . . . 52.2 The equilibrium nonexistence debate . . . . . . . . . . . . . . . 92.2.1 Modification of the equilibrium concept . . . . . . . . . . 102.2.2 Dynamic market interaction . . . . . . . . . . . . . . . . 122.2.3 Changes to contract or insurer characteristics . . . . . . 142.2.4 Synthesis . . . . . . . . . . . . . . . . . . . . . . . . . . 163 A Game-Theoretic Foundation for the Wilson Equilibrium 193.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193.2 The model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213.3 Equilibrium with WMS allocation . . . . . . . . . . . . . . . . . 233.4 Equilibrium with positive profits . . . . . . . . . . . . . . . . . . 263.5 Riley extension . . . . . . . . . . . . . . . . . . . . . . . . . . . 283.6 Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303.7 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .