Price paid in the pooling equilibrium will a function of the distribution of H and L risks
{"Image DocumentName": "Price paid in the pooling equilibrium will a function of the distribution of H and L risks", "Image ImageDescription": "Let \u03bb be the fraction of high risk people. Average risk in the population is. p  = \u03bbph + (1- \u03bb)pl. Actuarially fair policy will be based on average risk. \u03c0 = (1-p ) \u03b11 - p \u03b12 = 0.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}