56 | Insurance
You might be surprised to learn that others may be willing to take on risk that you are exposed to. However, they will want to be paid for assuming this risk. They are called insurers.
In this video, we discuss asymmetric information, adverse selection, and propitious selection in relation to the market for health insurance. Health insurance consumers come in a range of health, but to insurance companies, everyone has the same average health.
George Akerlof, a Nobel Prize-winning economist, analyzed the theory of adverse selection – which occurs when an offer conveys negative information about what is being offered.
Why is it so hard to regulate private water companies effectively? This video presents some general conundrums of regulation
In this video, we discuss asymmetric information, adverse selection, and propitious selection in relation to the market for health insurance. Health insurance consumers come in a range of health, but to insurance companies, everyone has the same average health.