Title of article :
A theorem on multi-period insurance contracts without commitment
Author/Authors :
Vلzquez، نويسنده , , Francisco J. and Watt، نويسنده , , R.، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 1999
Abstract :
In a multi-period setting that is equivalent to the classic Rothschild–Stiglitz adverse selection situation, we prove that if insurers do not gather information on accidents over time, then the inability to commit to contract renewals is sufficient for the optimal contract sequence to be periodic repetition of the Rothschild–Stiglitz single-period equilibrium.
Keywords :
Adverse Selection , Multi-period insurance contracts
Journal title :
Insurance Mathematics and Economics
Journal title :
Insurance Mathematics and Economics