An example of non-existence of Riley equilibrium in markets with adverse selection
Rothschild and Stiglitz (1976) proposed a model of a competitive market with adverse selection and showed that a (pure strategy) Nash equilibrium may not exist. Among the solutions proposed to deal with this problem, a particularly influential one is the notion of Riley (or reactive) equilibrium (Ri...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Academic Press Inc.
2019
|
| Subjects: | |
| Online Access: | View Fulltext in Publisher |