Adverse selection
id:
adverse-selection-182-13014593
title:
Adverse selection
text:
In economics, insurance, and risk management, adverse selection is a market situation where asymmetric information results in a party taking advantage of undisclosed information to benefit more from a contract or trade. In an ideal world, buyers should pay a price which reflects their willingness to pay and the value to them of the product or service, and sellers should sell at a price which reflects the quality of their goods and services. However, when one party holds information that the othe
brand slug:
wiki
category slug:
encyclopedia
description:
Selective trading based on possession of hidden information
original url:
https://en.wikipedia.org/wiki/Adverse_selection
date created:
2003-09-01T19:54:23Z
date modified:
2024-09-06T12:19:15Z
main entity:
{"identifier":"Q380037","url":"https://www.wikidata.org/entity/Q380037"}
image:
{"content_url":"https://upload.wikimedia.org/wikipedia/commons/d/d2/Cycle_of_market_breakdown_from_adverse_selection.png","width":476,"height":359}
fields total:
13
integrity:
16