Non-Exclusivity and Adverse Selection: An Application to the Annuity Market

32 Pages Posted: 30 Nov 2006

See all articles by Agar Brugiavini

Agar Brugiavini

Ca Foscari University of Venice - Dipartimento di Economia

Gwenael Piaser

Universite du Luxembourg

Date Written: October 2006

Abstract

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

Brugiavini, Agar and Piaser, Gwenael, Non-Exclusivity and Adverse Selection: An Application to the Annuity Market (October 2006). University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. 39/06, Available at SSRN: https://ssrn.com/abstract=948374 or http://dx.doi.org/10.2139/ssrn.948374

Agar Brugiavini (Contact Author)

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy

Gwenael Piaser

Universite du Luxembourg ( email )

148, avenue de la Faïencerie
Luxembourg, L-1511
Luxembourg
+ 352 46 66 44 6811 (Fax)

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