In the past, Hendren says, some researchers studied insurance underwriting and found little evidence of private information leading to adverse selection
in the individual life or individual LTCI markets.
The criticism continues that these represent “sham” self-insured plans and that a growing number of such plans will contribute to adverse selection
in the group health insurance marketplace.
At the heart of these contributions on adverse selection
is the idea that at a given price of insurance, buying insurance is more attractive for riskier individuals.
It can be assumed that both adverse selection
and moral hazard may influence the individual's decision to purchase health insurance.
is very relevant to the high cost of health insurance in the U.
Consistent with our hypotheses, IPOs with a high number of co-managers in their syndicates have lower spreads, lower adverse selection
costs, and a lower probability of informed trading (PIN) in the aftermarket.
Our analysis of alpha in the hours and days after a trade strongly supports the claim that attrade predictive analytics, as provided by Pipeline's Alpha Pro, offset adverse selection
and improve alpha capture.
This study implies that leasing and CPO programs have some impact in mitigating the consequences of adverse selection
in the used car market by improving the information mechanism between buyers and sellers.
Veteran journalist MERRILL GOOZNER responds on his blog that "for the public plan to work, Congress will have to regulate the exchanges to mitigate adverse selection
For these reasons, the individual market is especially susceptible to adverse selection
Second, adverse selection
will occur under a voluntary insurance system.
In regard to health care, Kotlikoff claims that market failure from adverse selection
in health insurance is so severe that adopting a universal health care insurance system is the only solution.
at Bloomington) has updated all his chapters and added new interactive exercises and a web site to cover game theory, including the concepts of dominated and dominant strategies, iterated dominance, and Nash equilibrium, information (such as sets, the Harsanyi transformation and Bayesian games) mixed and continuous strategies, dynamic games with symmetric information, reputation and repeated games with symmetric information, and dynamic games with incomplete information, and asymmetric information such as moral hazards, adverse selection
, mechanical design, postcontractual hidden knowledge and signaling.
This kind of overextension could likely result in adverse selection
and instability that could ultimately have dramatic effects on California's economy.
Wimmer and Chezum (2003) model adverse selection
as a case of Heckman's (1979) sample selection bias and examine the correlation between errors in participation and price equations to study how third party certification could alleviate the effect of adverse selection
in thoroughbred auctions.