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 ...

Life insurance is all about risk management. The thing is, most people think buying life insurance is black and white. You want protection, you buy a policy. But insurers know it’s far more ...

Adverse selection in health insurance happens when sicker people—or those who present a higher risk to the insurer—buy health insurance while healthier people don’t buy it. Adverse selection can also ...

Have I got a deal for you! I've got this great used car, and I might be willing to sell. The actual value of the car depends on how well it has been maintained, and this is known only to me; expressed ...

More productive firms may choose to locate in industry clusters in order to benefit from agglomeration externalities. However, negative sorting and adverse selection effects are also possible. This ...