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Search references for ADVERSE SELECTION. Phrases containing ADVERSE SELECTION
See searches and references containing ADVERSE SELECTION!ADVERSE SELECTION
Selective trading based on possession of hidden information
In economics, insurance, and risk management, adverse selection is a market situation where asymmetric information results in a party taking advantage
Adverse_selection
Concept in contract theory and economics
causing market failure in the worst case. Examples of this problem are adverse selection, moral hazard, and monopolies of knowledge. A common analogy used
Information_asymmetry
1970 economics paper by George Akerlof
the quality of the car as opposed to the buyer, creating adverse selection. Adverse selection is a phenomenon where sellers are not willing to sell high
The_Market_for_Lemons
Conflict of interest when one person acts on another's behalf
models typically either examine moral hazard (hidden actions) or adverse selection (hidden information). The principal–agent problem typically arises
Principal–agent_problem
Type of market failure
is the result of structural features of the market (in particular, adverse selection), and will characterise long run market outcomes (barring some technological
Credit_rationing
Economic analysis of contracts
theory framework to several typical situations, labeled moral hazard, adverse selection and signalling. The spirit of these models lies in finding theoretical
Contract_theory
Payments made by authorized bodies to unemployed people
economic argument for unemployment insurance comes from the principle of adverse selection. One common criticism of unemployment insurance is that it induces
Unemployment_benefits
Topics referred to by the same term
(Nazi concentration camps) The Selection, a novel by Kiera Cass A store brand used by Metro Inc. Adverse selection Selection effect, a distortion of data
Selection
Insurance market condition
result of changes in the covered population. It is the result of adverse selection in insurance policies in which lower risk policy holders choose to
Death_spiral_(insurance)
Institutional share trading syndicate not accessible to the general public
market impact, and then purchasing at the new price. Another type of adverse selection is caused on a very short-term basis by the economics of dark pools
Dark_pool
Something that motivates individuals to perform
overjustification effect, principal–agent problem, moral hazard, free-riding, or adverse selection. Incentives encourage specific behaviors or actions by persons and
Incentive
Increases in the exposure to risk when insured, or when another bears the cost
upon closer reading, a description of the closely related concept, adverse selection. In 1998, William J. McDonough, head of the New York Federal Reserve
Moral_hazard
Phenomenon in economics and accounting
price impact ratios. When bid-ask spread components are decomposed, adverse selection costs increase significantly during earnings announcements, while
Post–earnings-announcement drift
Post–earnings-announcement_drift
Strategy of combating adverse selection
Screening in economics refers to a strategy of combating adverse selection – one of the potential decision-making complications in cases of asymmetric
Screening_(economics)
Insurance covering health-related expenses
them, to begin with, but this would place such a fund at risk of "adverse selection", attracting a disproportionate number of members from other funds
Health_insurance
Process by which monetary policy affects the economy
Monetary policy affects stock prices, leading to moral hazard and adverse selection, which leads to changes in lending activity and investment Cash flow
Monetary transmission mechanism
Monetary_transmission_mechanism
Insurance that covers lost income when normal business operations are disrupted
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Business interruption insurance
Business_interruption_insurance
Economic term
providing a signal to the market, asymmetric information will result in adverse selection in the IPO market. Various forms of signaling have also been observed
Signalling_(economics)
Type of insurance in the United States
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Inland_marine_insurance
Requirement that people have health insurance
coverage of pre-existing ailments for up to one year to discourage adverse selection. Japan has a universal health care system that mandates all residents
Health_insurance_mandate
U.S. federal statute known as Obamacare
conditions or demographic status (except age). To combat the resultant adverse selection, the act mandated that individuals buy insurance (or pay a monetary
Affordable_Care_Act
American economist
impact than adverse retention on enrollees' choice of health plans.[citation needed] In summary, movement from adverse selection and adverse retention is
David_Cutler
American home warranty company
estate transaction. Gwin, Carl R.; Ong, Seow‐Eng (2001). "Overcoming adverse selection in buying an existing home". Journal of Property Investment & Finance
American_Home_Shield
Economic theory of voluntary agreements
from capture effects". The relationship banking approach focuses on adverse selection as the main consequence of the information imperfection between lender
Implicit_contract_theory
Branch of microeconomics
inefficiency. Examples of this problem are selection (adverse or advantageous) and moral hazard. Adverse selection occurs when one side of the partnership
Information_economics
Insurance that covers a defined group of people
of taking insurance. Group coverage can help reduce the problem of adverse selection by creating a pool of people eligible to purchase insurance who belong
Group_insurance
Social science studying goods and services
but no incentive to disclose it. Related problems in insurance are adverse selection, such that those at most risk are most likely to insure (say reckless
Economics
Insurance for rent
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Rent_insurance
Insurance that pays benefits upon the policyholder's death
group. Contract provisions will attempt to exclude the possibility of adverse selection. Group life insurance often allows members exiting the group to maintain
Life_insurance
Compensation that a broker receives
amount back to the firm. Since retail orders have a lower chance of adverse selection for the market maker, they are more profitable for the market maker
Payment_for_order_flow
Branch of economics
must cope with adverse selection which occurs when they are unable to fully predict the medical expenses of enrollees; adverse selection can destroy the
Health_economics
Insurance against damage to buildings while they are under construction
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Builder's_risk_insurance
Information technology risk insurance
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Cyber_insurance
Fraternity organized as an order
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Fraternal_order
US Federal insurance program
creating accurate risk assessments for policy pricing and risks of adverse selection. The NFIP is managed and administered by the Federal Emergency Management
National Flood Insurance Program
National_Flood_Insurance_Program
Defrauding of insurance
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Insurance_fraud
Government-sponsored social program
and insured about the risk level ultimately leads to the problem of adverse selection. An example of this problem would be the situation where insurers
Social_insurance
Conditions under which a risk can be covered by insurance
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Insurability
Organisation of workers with common goals
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Trade_union
Medical condition that started before a person's health benefits went into effect
These exclusions by the insurance industry were intended to mitigate adverse selection by potential customers. Such exclusions have been prohibited since
Pre-existing_condition
Insurance coverage against property loss from flooding
do not insure against the peril of flood due to the prevalence of adverse selection, which is the purchase of insurance by persons most affected by the
Flood_insurance
Natural disaster outside human control
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Act_of_God
Market and non-market factors that determine pricing
visibility of spending and a tendency to over-consume medical care. Adverse selection, where insurers can choose to avoid sick patients. This can lead to
Health care prices in the United States
Health_care_prices_in_the_United_States
Historical coffee shop in London, England
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Lloyd's_Coffee_House
Bond tied to ESG objectives
head". Reuters. Henide, Karim (2022-10-01). "Voluntary disclosure and adverse selection: Bayesian game theoretical inference for green bond labelling regimes"
Sustainability-linked_bond
How trading mechanisms and market design shape prices, liquidity, and transaction costs
execution methods. Transaction costs include order processing costs, adverse selection costs, inventory holding costs, and monopoly power. Their impact on
Market_microstructure
Insurance against others' frauds
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Fidelity_bond
Insurance that pays benefits for injuries or death caused by accidental events
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Accident_insurance
Place where stocks are traded
commissions of the exchange. However, it also has problems such as adverse selection. Financial regulators have probed dark pools. Market participants
Stock_market
Privately-negotiated trade of large amounts of a security
opposite side of the transaction, the broker-dealer runs the risk of "adverse selection". Block trading is a useful measure for analysts in order to assess
Block_trade
Inefficiently allocated markets
sometimes cause the transactions to go awry. Examples of this problem are adverse selection and moral hazard. Most commonly, information asymmetries are studied
Market_failure
Insurance that protects against most risks to property
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Property_insurance
Out-of-pocket expense requirement in insurance
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Deductible
Financial markets concept
Bartram, Söhnke M.; Fehle, Frank R.; Shrider, David (May 2008). "Does Adverse Selection Affect Bid-Ask Spreads for Options?". Journal of Futures Markets.
Bid–ask_spread
main types of information asymmetry in capital markets: Adverse selection: Adverse selection occurs before the signing of the contract. The lack of information
Capital_market_imperfections
Health insurance for dental care
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Dental_insurance
Employment laws
from volunteering their salaries. This raises the possibility of adverse selection, in which only workers with good salaries volunteer (and workers with
Salary_history_bans
Regulatory body of the Government of India
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Insurance Regulatory and Development Authority
Insurance_Regulatory_and_Development_Authority
Latin phrase meaning "in proportion"
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Pro_rata
Type of liability insurance
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Umbrella_insurance
Private mortgage insurance
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Lenders_mortgage_insurance
Economics of labour within companies
monitoring costs and adverse selection. However, it also has some disadvantages, such as monitoring costs, adverse selection, and the possibility of
Personnel_economics
Weakly optimal allocation of resources
seller but not to the buyer) which results in moral hazard or an adverse selection and a sub-optimal outcome. In such a case, a planner who wishes to
Pareto_efficiency
Collection of reference securities
traditional CDO structures, such as the risks of moral hazard or adverse selection in the choice of the names in the portfolio ...". Also, arrangers
Bespoke_portfolio_(CDO)
Analyst of business risk and uncertainty
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Actuary
Financial practice supporting a contract's value
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Underwriting
Modification of market activity
Retrieved 27 April 2024. Tirole, Jean (February 2012). "Overcoming Adverse Selection: How Public Intervention Can Restore Market Functioning". American
Market_intervention
Cognitive bias of assuming others share your knowledge
Familiarity" features two geochemists discussing the phenomenon. Adverse selection – Selective trading based on possession of hidden information Dunning–Kruger
Curse_of_knowledge
Insurance policy for a tenant's personal property and liability
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Renters'_insurance
Economic and political term
Future in Perspective p. 422. Karla Hoff and Joseph E. Stiglitz (1998) Adverse Selection and Institutional Adaptation – Department of Economics Working Paper
Trickle-down_economics
Bonds used to fund projects which benefit the environment
the susceptibility of voluntary green-labelling to greenwashing and adverse selection as a function of the perceived lack of regulatory oversight and the
Green_bond
Defined period in US health insurance
event. Open enrollment periods are used in insurance markets to limit adverse selection risks resulting when enrollees can switch plans at will. During this
Annual_enrollment
Highest point of an interest rate
a client's potential for repayment. Two fundamental issues arise: Adverse selection - clients that are demonstrably lower risk are likely to have already
Interest_rate_ceiling
Insurance industry fraud prevention data exchange
misrepresentations on insurance applications to reduce fraud and anti-selection or adverse selection. MIB Group, Inc. is a member-owned corporation operating in
MIB_Group
In U.S. law, practices with adverse impacts on specific protected groups
Uniform Guidelines on Employee Selection Procedures, an adverse impact is defined as a "substantially different rate of selection in hiring, promotion, or other
Disparate_impact
Suspension of contractual obligations during extreme circumstances
result of the negligence or malfeasance of a party, which has a materially adverse effect on the ability of such party to perform its obligations. Any result
Force_majeure
United States federal law concerning health information
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Health Insurance Portability and Accountability Act
Health_Insurance_Portability_and_Accountability_Act
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Professional liability insurance
Professional_liability_insurance
Intermediary between buyers and sellers of insurance
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Insurance_broker
Creation of new financial instruments, technologies, and institutions
flaws are made. These imperfections include information asymmetries, adverse selection and agency problems, incomplete markets, regulation and taxes, and
Financial_innovation
most important classes of models in complete contracting theory are adverse selection and moral hazard models. In this part of contract theory, every conceivable
Complete_contract
Insurance that agrees to pay out upon a triggering event
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Parametric_insurance
Permanent life insurance with fixed premiums and guaranteed cash-value accumulation
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Whole_life_insurance
Type of property insurance that covers a private residence
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Home_insurance
Study of the markets for wage labour
Such a phenomenon, called adverse selection, can sometimes lead to market collapse. One way to combat adverse selection, firms will try to use signalling
Labour_economics
Topics referred to by the same term
find an infection Screening (economics), a strategy of combating adverse selection (includes sorting resumes to select employees) Screening (environmental)
Screening
Contractual obligation to compensate for losses incurred by the other party
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Indemnity
Insurance that covers financial losses from events during travel
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Travel_insurance
Lack of quantifiable knowledge in economics
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Knightian_uncertainty
Type of vehicle insurance
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
GAP_insurance
example of adverse selection, similar to the classic "lemons" example of Akerlof. Rational bidders will anticipate the adverse selection, so that even
Common_value_auction
Insurance providing income protection when a disability prevents a person from working
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Disability_insurance
Situation where a damaged property's salvage or repair cost exceeds its insured value
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Total_loss
Type of insurance policy
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Mortgage_insurance
Situations involving imperfect or unknown information
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Uncertainty
Organization based on mutual benefit
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Mutual_organization
Method used to study economic questions
instance, researchers have experimentally studied moral hazard theory, adverse selection theory, exclusive contracting, deferred compensation, the hold-up
Experimental_economics
Insurance policy
compensation Insurance policy and law Act of God Actuarial science Actuary Adverse selection Risk Risk assessment Risk management Uncertainty/Knightian Value of
Business overhead expense disability insurance
Business_overhead_expense_disability_insurance
Identification, evaluation and control of risks
finance. Risk is defined as the possibility that an event will occur that adversely affects the achievement of an objective. Uncertainty, therefore, is a
Risk_management
Legal concept
Schmitz (2002, 2007) has shown that asymmetric information due to adverse selection or moral hazard may lead the research lab to sell more licenses than
License
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