Non-Exclusivity and Adverse Selection: An Application to the Annuity Market
32 Pages Posted: 30 Nov 2006
Date Written: October 2006
Using a common agency framework, we characterize possible equilibria when annuities contracts are not exclusive. We discuss theoretical and empirical implications of these equilibria. First, we show that at equilibrium prices are not linear. Then we characterize an equilibrium. We provide conditions for existence and show that this equilibrium is efficient.
Keywords: Menus, Common Agency, Insurance, Annuity Markets, Adverse Selection, Efficiency
JEL Classification: D82, H5, J2, G1
Suggested Citation: Suggested Citation