The value of screening mechanisms under alternative insurance possibilities

摘要: Abstract This paper investigates the welfare implications of symmetrical improvements in information and accompanying screening mechanisms which allow for improved matching individuals to their respective risk classes. Unlike previous models used investigate this phenomenon, allows possibility that differ not simply according exogenously specified unequal loss probabilities, but rather possess different self-protection technologies. Moreover, various insurance contracting possibilities are also considered. It is demonstrated structural form heterogeneity technologies type contracts available market determine an interactive way value improves class.