TY - JOUR ID - publications16508 UR - http://tse-fr.eu/pub/27986 IS - 1 A1 - Goulão, Catarina A1 - Panaccione, Luca Y1 - 2015/// N2 - In this paper, we extend the framework of Dubey and Geanakoplos (2002) to the case 6 of moral hazard. Risk-averse consumers, who can in uence the likelihood of states of 7 nature by undertaking a hidden action, receive insurance by voluntarily participating 8 in a pool of promises of deliveries of future uncertain endowments. In exchange, they 9 gain the right to receive a share of the total return of the pool, in proportion to their 10 promises. We first analyze the equilibrium properties of the model and then illustrate 11 how an aggregate pool of promises of heterogenous consumers, differing in expected 12 endowment, results in a welfare improvement over the two segregated pools. PB - Economics Bulletin JF - Economics Bulletin VL - 35 KW - moral hazard KW - pool of promises KW - heterogeneous consumers SN - 1545-2921 TI - Pooling and redistribution with moral hazard AV - none ER -