English, Article, Journal or magazine article edition: Latent Policies: An Extended Example Richard Arnott; Chong-en Bai; Brian Sack

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Bookmark: http://trove.nla.gov.au/version/73895
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Latent Policies: An Extended Example
Author
  • Richard Arnott
  • Chong-en Bai
  • Brian Sack
Physical Description
  • preprint
Notes
  • Arnott and Stiglitz (1993) have argued that, in competitive insurance markets with moral hazard, equilibrium may entail firms offering latent policies--policies that are not bought in equilibrium but are kept in place to deter entry. This paper provides an extended example of such an equilibrium, which not only proces that latent policies can be present in equilibrium but also elucidates the mechanism which makes them potentially effective in deterring entry.
  • latent policies, insurance markets
  • RePEc:boc:bocoec:353
Language
  • English
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