Topics
Adverse selection
Adverse selection occurs when the expected value of a transaction is known more accurately by the buyer or the seller due to an asymmetry of information; e.g. health insurance. This is also known as the ‘hidden attributes’ problem i.e. someone with a long-established health condition might be able to hide it from a health insurance company.
-
What is symmetric information?
Study Notes
-
Information Failure - What is Adverse Selection?
Study Notes
-
Why healthy people have high coverage and those most at risk don’t
2nd February 2017
-
Information Economics - The Market for Lemons
Study Notes
-
Information Failures in Markets
Topic Videos
-
Information Failure Revision Quiz
Quizzes & Activities
-
Information Failure: Four Short Revision Videos
Topic Videos
-
Information Failure
Study Notes
-
Featured Snippets and Information Failure
19th November 2017
-
Is telematics the future of car insurance?
17th August 2017
-
Technology cuts insurance costs for young drivers
29th September 2015