| Author: | Kahn, C. Mookherjee, D. |
| Title: | Coalition proof equilibrium in an adverse selection insurance economy |
| Journal: | Journal of Economic Theory
1995 : JUN, VOL. 66:1, p. 113-138 |
| Index terms: | ECONOMICS THEORIES ADVERSE SELECTION |
| Language: | eng |
| Abstract: | The authors extend the notion of Coalition Proof Nash Equilibrium to a class of matching games with private information. This solution concept is applied to an adverse selection insurance economy and is shown to yield a unique allocation: the optimal allocation without cross-subsidy. This contrasts sharply with the outcome in alternative institutional settings for negotiations among players, as modeled for instance by the Incentive Compatible Core. |
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