Review of Economic Studies Vol. 52 No. 4 1985
Adverse Selection, Repeated Insurance Contracts and Annoucement Strategy
Abstract
In this note, we present a strategy which relies on multi-period contracts and on a self-selection mechanism which induces the insured to announce his true risk in the first period, thus eliminating inefficiency due to adverse selection.
- DOI
- 10.2307/2297743
- Volume
- 52
- Issue
- 4
- Pages
- 719
- Sources
- openalex crossref