RT Journal Article
SR 00
A1 Goulão, Catarina
A1 Panaccione, Luca
T1 Pooling and redistribution with moral hazard
JF Economics Bulletin
YR 2015
FD 2015
VO 35
IS 1
K1 moral hazard
K1 pool of promises
K1 heterogeneous consumers
AB 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
SN 1545-2921
LK https://publications.ut-capitole.fr/id/eprint/16508/
UL http://tse-fr.eu/pub/27986