When an individual who is a higher-than-average risk tries to buy insurance at the standard rate.
Related information about adverse selection:
- Adverse selection - Wikipedia, the free encyclopedia
Adverse selection, anti-selection, or negative selection is a term used in economics, insurance, risk management, and statistics. It refers to a market process in ...
- Adverse Selection Definition | Investopedia
1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have information that buyers don't (or vice ...
- Adverse selection versus moral hazard - Market
Mar 18, 2009 ... Adverse selection and moral hazard are both examples of market failure situations, caused due to asymmetric information between buyers and ...
- Experiment 2 Adverse Selection - UCSB Economics
Experiment 2. Adverse Selection. A “Lemons” Market. If you have ever purchased a used car from a stranger, you probably have worried about whether she was ...
- Adverse Selection
Adverse selection is a term used primarily in insurance although it is useful for other industries, as well. It refers to a situation in which the buyer or seller of a ...
- Adverse Selection in Health Insurance
Such adverse selection induces three types of losses: efficiency losses from individuals being allocated to the wrong plans; risk sharing losses since premium ...
- Adverse Selection - Wolfram Demonstrations Project
Adverse selection is the proclivity of those with higher risk to purchase insurance in greater amounts than those with lower risk. Much of insurance law and ...
- Economics A-Z terms beginning with A | The Economist
Adverse selection can be a problem when there is asymmetric information ... When there is adverse selection, people who know they have a higher risk of ...