The Welfare Cost of Asymmetric Information: Evidence from the U.K. Annuity Market
---- Acknowledgements -----
We are grateful to James Banks, Richard Blundell, Jeff Brown, Peter Diamond, Carl Emmerson, Jerry Hausman, Jonathan Levin, Alessandro Lizzeri, Wojciech Kopczuk, Ben Olken, Casey Rothschild, and seminar participants at the AEA 2007 annual meeting, Cowles 75th anniversary conference, Chicago, Hoover, Institute for Fiscal Studies, MIT, Stanford, Washington University, and Wharton for helpful comments, and to several patient and helpful employees at the firm whose data we analyze. Financial support from the National Institute of Aging (Finkelstein), the National Science Foundation (Einav), and the Social Security Administration is greatfully acknowledged. Einav also acknowledges the hospitality of the Hoover Institution. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.