question archive T or F: Suppose there is a separating equilibrium in the Rothschild-Stiglitz model
T or F: Suppose there is a separating equilibrium in the Rothschild-Stiglitz model
Subject:EconomicsPrice: Bought3
T or F: Suppose there is a separating equilibrium in the Rothschild-Stiglitz model. If everyone becomes more risk averse, this can cause the equilibrium to collapse. Can I please get a more indepth answer so I can understand :D
