Linear Prices Equilibria and Nonexclusive Insurance Market
type: Dataset
description: We consider a competitive insurance market in which agents can privately enter into multicontractual insurance relationships and undertake hidden actions. We study the existence of linear equilibria when insurance companies do not have any restriction on their pricing rules. We provide conditions under which a linear equilibrium exists. We show that two different types of linear equilibria could exist: A first one in which insurance companies make zero expected profits, and a second one in which they make strictly positive expected profits. We also analyze the welfare properties of the linear equilibria. We show that they are not always second best Pareto optimal.
issued: 2026-05-09T11:34:44.277811
language: en
modified: 2026-05-09T11:34:44.277818
contact point: Organization
  fn: CCSD
keyword: common-agency
keyword: infoeu-reposemanticspreprint
keyword: insurance
keyword: jel-d---microeconomicsdd4---market-structure-pricing-and-designdd4d43---oligopoly-and-other
keyword: jel-l---industrial-organizationll1---market-structure-firm-strategy-and-market-performancell1
keyword: linear-prices-equilibria
keyword: moral-hazard
keyword: perfect-competition
keyword: preprints-working-papers-
keyword: shsecohumanities-and-social-scienceseconomics-and-finance
landing page: https://hal.science/hal-00870113

Linear Prices Equilibria and Nonexclusive Insurance Market
type: Distribution
format: HTML
issued: 2026-05-09T11:34:44.282037
modified: 2026-05-09T11:34:44.260820
access URL: https://hal.science/hal-00870113

test_moissonnage_selune
type: Agent