In general, two-stage market equilibria cannot be associated with equilibria in one market place.
Next we define two-stage market equilibria. The definition is based on the given partition P of the consumer population I into groups.
When risks are imperfectly categorized and Nash-Riley unregulated market equilibria
prevail, weak anti-discrimination regulation yields no change in the menu of contracts on offer.
When considering competitive insurance market equilibria
, this article shows that the combination of private insurance with two dynamically traded assets generates effectively complete markets.
In stationary market equilibria
, all the firms in the market will offer the same optimal contract derived in the previous section since they face the same programming problem.