《RS1976》.pdfVIP

Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information Author(s): Michael Rothschild and Joseph Stiglitz Source: The Quarterly Journal of Economics, Vol. 90, No. 4 (Nov., 1976), pp. 629-649 Published by: The MIT Press Stable URL: /stable/1885326 Accessed: 14/11/2010 06:34 Your use of the JSTOR archive indicates your acceptance of JSTORs Terms and Conditions of Use, available at /page/info/about/policies/terms.jsp. JSTORs Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at /action/showPublisher?publisherCode=mitpress. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@. The MIT Press is collaborating with JSTOR to digitize, preserve and extend access to The Quarterly Journal of Economics. EQUILIBRIUM IN COMPETITIVE INSURANCE MARKETS: AN ESSAY ON THE ECONOMICS OF IMPERFECT INFORMATION* MICHAEL ROTHSCHILD AND JOSEPH STIGLITZ Introduction, 629.-I. The basic model, 630.-Il. Robustness, 638-III. Conclusion, 648. INTRODUCTION Economic theorists traditionally ba