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Part 1: Key Concepts
Part 2: Progress
Part 3: Understanding Trade
Part 4: Trust, Agency, and Bystanders
Part 5: Management of a Commercial Society
Part 6: Personal and Business Finance
Part 7: Innovation and Entrepreneurship
Table of Contents
Asymmetric Information and Health Insurance
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.
Asymmetric Information and Used Cars
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.
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