Finance Economics and Econometrics Lab
Seminar Series
2022 - 2023
Seminar Financed by the TEPREME project
Speaker: David Bardey (U de los Andes - CEDE).
Title: “Genetic Testing with Attraction to Chance from Pooling to Separating Contracts”
joint with Philippe De Donder (TSE).
Date: Thursday, March 23rd at 12h30 (Paris Time).
Abstract: We analyze how the increased use of genetic tests, following a decrease in their monetary cost, a¤ects the equilibrium contracts (pooling or separating) in health insurance markets. Policyholders di¤er in their psychological attitude towards testing, resulting in an endogenous fraction of tested agents. We show that large test costs result in a fraction of tested agents low enough to sustain a pooling equilibrium involving cross subsidies between policyholders. A separating equilibrium occurs when the test cost is lower than a threshold level. Decreases in genetic test costs are Pareto improving only when the equilibrium is separating and may be welfare damaging for a large fraction of agents when the equilibrium is pooling, or switches from pooling to separating.
Here are links to the speaker’s website, the FEELab website and the TEPREME project website:
https://sites.google.com/site/davidbardey
https://sites.google.com/view/feelabtbs/
https://sites.google.com/view/tepreme/
You are cordially invited to participate to the following seminar of the FEELab, which will take place in Room 204, Bosco building:
For more information, please contact: Anna D’Annunzio a.d-annunzio@tbs-education.fr or Pierre Mella-Barral p.mella-barral@tbs-education.fr