Categorizing Risks in the Insurance Industry
分析信息不对称下保险公司对风险进行不完美分类的福利影响，比较不同均衡类型，发现仅在初始为纳什无补贴均衡时存在帕累托改进。
This paper analyzes the welfare implications of imperfectly categorizing risks in the insurance industry under conditions of asymmetric information. Firms, initially unable to distinguish the risk type of individuals, are provided with imperfect information concerning risk membership. The paper then compares various Wilson-type equilibria to determine the welfare implications of firms imperfectly categorizing risks. It is shown that only in the case where the initial equilibrium is of the Nash no-subsidy type is there a Pareto-type improvement in welfare.