Abstract
This article studies general economies with adverse selection in which symmetric companies supply (potentially multiple) plans to privately informed consumers and compete in terms of price schedules. I show that a basic price cap regulation, in which the price caps are endogenously determined by companies, discourages risk selection over efficient allocations, and therefore, equilibrium exists in every economy. Moreover, I demonstrate that in generalisations of Rothschild and Stiglitz (1976) and Wilson (1977) economies, companies earn zero profits in equilibrium, and every equilibrium allocation is efficient.
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