Non-exclusive dynamic contracts, competition, and the limits of insurance


We study how the presence of non-exclusive contracts limits the amount of insurance provided in a decentralized economy. We consider a dynamic Mirrleesian economy in which agents are privately informed about idiosyncratic labor productivity shocks. Agents sign insurance contracts with multiple firms (i.e., they are non-exclusive), which include both labor… (More)
DOI: 10.1016/j.jet.2016.09.006


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