Optimal ex post risk adjustment in markets with adverse selection (Q2283133)

The paper focuses on health insurance markets and consider a scheme of transfers among a regulator and insurers. In particular, the scheme proposed by the author is constructed considering that the regulator's transfers are based on the \textit{ex post} profits of insurers; moreover the regulator holds minimal information to implement the scheme. After explaining the model, the author delves into transfers, game and equilibrium; then a scheme of optimal transfers is provided as well as the existence and efficiency of equilibrium. A discussion about the results concludes the paper.