?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F45439%2F&rft.title=Advantageous+selection+without+moral+hazard&rft.creator=De+Donder%2C+Philippe&rft.creator=Leroux%2C+Marie-Louise&rft.creator=Salani%C3%A9%2C+Fran%C3%A7ois&rft.subject=B-+ECONOMIE+ET+FINANCE&rft.description=Advantageous+selection+occurs+when+the+agents+most+eager+to+buy+insurance+are+also+the+cheapest+ones+to+insure.+Hemenway+(1990)+links+it+to+differences+in+risk-aversion+among+agents%2C+implying+different+prevention+efforts%2C+and+finally+different+riskinesses.+We+argue+that+it+may+also+appear+when+agents+share+the+same+attitude+towards+risk%2C+and+in+the+absence+of+moral+hazard.+Using+a+standard+asymmetric+information+setting+satisfying+a+single-crossing+property%2C+we+show+that+advantageous+selection+may+occur+when+several+contracts+are+offered%2C+or+when+agents+also+face+a+non-insurable+background+risk%2C+or+when+agents+face+two+mutually+exclusive+risks+that+are+bundled+together.+We+illustrate+this+last+effect+in+the+context+of+life+care+annuities%2C+a+product+bundling+long-term+care+insurance+and+annuities%2C+by+constructing+a+numerical+example+based+on+Canadian+survey+data.&rft.publisher=TSE+Working+Paper&rft.date=2023-04-17&rft.type=Monograph&rft.type=NonPeerReviewed&rft.format=text&rft.language=en&rft.identifier=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F45439%2F1%2Fwp_tse_1334.pdf&rft.identifier=++De+Donder%2C+Philippe+%3Chttps%3A%2F%2Fwww.idref.fr%2F199756120%3E%2C+Leroux%2C+Marie-Louise+%3Chttps%3A%2F%2Fwww.idref.fr%2F242861091%3E+and+Salani%C3%A9%2C+Fran%C3%A7ois+%3Chttps%3A%2F%2Fwww.idref.fr%2F03504649X%3E++(2023)+Advantageous+selection+without+moral+hazard.++TSE+Working+Paper%2C+n.+22-1334%2C+Toulouse.+++++&rft.relation=http%3A%2F%2Ftse-fr.eu%2Fpub%2F126901&rft.language=en