Publication:
Can transparency increase adverse selection? Evidence from an electronic platform for annuities

Date

2023

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Abstract

We show that the introduction of an electronic platform in the Chilean annuity market with the objectives of bringing transparency and enhancing competition also exacerbated adverse selection. The longevity gap between male annuitants and non-annuitants increased around 24 months

Description

Keywords

Adverse selection, Annuities, Market transparency, Chilean pension system

Citation

Eduardo Fajnzylber, M. Florencia Gabrielli, Manuel Willington, Can transparency increase adverse selection? Evidence from an electronic platform for annuities, Economics Letters, Volume 228, 2023, 111135, https://doi.org/10.1016/j.econlet.2023.111135