... individuals is z(α), and the prices of life insurance and of the numeraire are All individuals purchase the same amount of annuities and life insurance and, for a given income, optimum utility increases ... purchase the bundle and also purchase X1 and X2 in stand-alone markets Typically, there are multiple pooling equilibria The above example demonstrates that in some equilibria we may find bundling of ... (14.10) For general analyses of pooling equilibria see, for example, Laffont and Martimort (2002) and Salanie (1997) As before, we assume that only linear price policies are feasible August 18, 2007...