Adverse selection is the process of making a decision without having all of the knowledge needed. It is a term commonly used in the insurance industry, when applicants withhold information from an ...

In an extreme case, the poor risks will be the only purchasers of coverage, and the insurer can expect to lose money on each policy sold. This situation, referred to as adverse selection, occurs when ...

In my discussion of the economics underlying the reason for the mandate (and the penalties needed to enforce it), I talked about the adverse selection problem, but I wish I would have talked about ...

Here are the key figures. 59 percent of non-elderly adults who selected an exchange plan were older than 45, compared to just 32 percent of the uninsured population: a skew of 27 percent. On the other ...

Chiappori, Pierre‐André, and Salanié, Bernard. “Testing for Asymmetric Information in Insurance Markets.” J.P.E. 108 (February 2000): 56–78. Crocker, Keith ...

This article uses unique data from the London Stock Exchange to examine how trader anonymity and market liquidity affect dealers' decisions about where to place interdealer trades. During our sample ...