Susanne Pech, Johann Brunner,
"Adverse selection in the annuity market with sequential and simultaneous insurance demand"
, Nummer 0204, 2002, Working paper, Department of Economics, University of Linz, Austria
Adverse selection in the annuity market with sequential and simultaneous insurance demand
Sprache des Titels:
This paper investigates the effect of adverse selection on the private annuity market in a model with two periods of retirement and two types of individuals, who differ in their life-expectancy. In order to introduce the existence of limited-time pension insurance, we assume that for each period of retirement separate contracts can be purchased. Demand for the two periods can be decided either sequentially or simultaneously. We show that that only a situation where all risk types choose sequential contracts can be an equilibrium and that this outcome is favourable for the long-living, but are unfavourable for the short-living individuals.
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Notiz zum Zitat:
Working paper, Department of Economics, University of Linz, Austria