Linked from

The 18 pages that link to Adverse selection, each with the reason it gives.

• Principal–agent problemRelated: A principal may select an agent without knowing the agent’s true abilities or intentions.

• Information asymmetryRelated: Buyers unable to distinguish quality may drive reliable sellers out of the market.

• Moral hazardCompared with: Adverse selection concerns hidden traits before agreement; moral hazard concerns behavior afterward.

• InsuranceRelated: Insurers may face a riskier pool when applicants know more about their exposure than the insurer does.

• Social insuranceRelated: Mandatory or broad participation helps social insurance avoid risk pools dominated by high-cost participants.

• Due diligenceRelated: Diligence can expose hidden qualities that would otherwise distort a transaction.

• Actuarial scienceRelated: Pricing from pooled averages can attract disproportionate risk and undermine insurance arrangements.

• Information economicsRelated: Unobserved quality can drive high-quality sellers or buyers out of a market.

• Efficiency wageRelated: A wage premium may attract a larger or more suitable pool of applicants.

• Joseph StiglitzRelated: Stiglitz showed how hidden information can unravel markets such as insurance.

• Bayesian gameRelated: It is an economic consequence of private types in many Bayesian models.

• Bid–ask spreadRelated: Dealers may widen spreads to offset losses to better-informed traders.

• UnderwritingRelated: Applicants may know more about their risks than the underwriter can observe.

• George AkerlofRelated: When buyers offer an average price, owners of high-quality goods may withdraw, worsening the pool.

• John HarsanyiRelated: Harsanyi’s framework represents how private characteristics shape strategic exchange.

• Bengt HolmströmRelated: It distinguishes hidden information at contract formation from hidden actions after agreement.

• Employee benefitsRelated: Enrollment choices can raise insurance costs when participation is uneven across health risks.

• Health Care Economics and OrganizationsBroader topic: It can destabilize insurance markets when risk is unevenly known.