If a pooling equilibrium exists in an insurance market, no separating equilibrium can exist.
Answer the following statement true (T) or false (F)
True
Rationale: The existence of a pooling equilibrium implies that low cost types prefer the pooled policy to a restricted low cost policy that high cost types would not buy. Thus, the fact that the pooling equilibrium exists implies that no separating equilibrium exists.
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A) Solid. B) Dash. C) either Solid or Dash, as your payout will be the same either way. D) You need to know what the 9th student will choose before you will know your best choice.
The ________ describes the relationship between the amount of labor employed and real GDP
A) production function B) production possibilities frontier C) Lucas Wedge D) inflation rate E) Okun Gap