{"title":"A. Appendix","authors":"","doi":"10.1515/9783110593808-007","DOIUrl":null,"url":null,"abstract":"Proof of Proposition 1: We consider a policy x that maintains the ordering of individuals’ willingness-to-pay and thus the corresponding surplus from buying insurance conditional on the share of insured individuals Q (x). We denote by w̃ (x) an individual’s net willingness-to-pay and the corresponding density by g. For the marginal individual, the net willingness-to-pay equals w̃ (x) = P (x) = D−1 (Q (x) ;x), while the original willingness-to-pay equals w̃ (0) = D−1 (Q (x) ; 0). Equilibrium welfare for policy x (not accounting for the budgetary cost) equals","PeriodicalId":189710,"journal":{"name":"Random Signal Analysis","volume":"14 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2018-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Random Signal Analysis","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1515/9783110593808-007","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
Proof of Proposition 1: We consider a policy x that maintains the ordering of individuals’ willingness-to-pay and thus the corresponding surplus from buying insurance conditional on the share of insured individuals Q (x). We denote by w̃ (x) an individual’s net willingness-to-pay and the corresponding density by g. For the marginal individual, the net willingness-to-pay equals w̃ (x) = P (x) = D−1 (Q (x) ;x), while the original willingness-to-pay equals w̃ (0) = D−1 (Q (x) ; 0). Equilibrium welfare for policy x (not accounting for the budgetary cost) equals