Difference between revisions of "Adverse selection"
(Created page with "Adverse selection is the problem that arises when one party knows more about the quality of the good than the other, and as a result, the party with less knowledge must wo...") |
|||
| Line 4: | Line 4: | ||
According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | ||
:[[Adverse selection]]. The problem that arises when one party knows more about the quality of the good than the other, and as a result, the party with less knowledge must worry about ending up at a disadvantage. | :[[Adverse selection]]. The problem that arises when one party knows more about the quality of the good than the other, and as a result, the party with less knowledge must worry about ending up at a disadvantage. | ||
| + | According to [[Macroeconomics by Mankiw (7th edition)]], | ||
| + | :[[Adverse selection]] is the problem that arises when one party knows more about the quality of the good than the other, and as a result, the party with less knowledge must worry about ending up at a disadvantage. | ||
| + | |||
[[Category: Economics]][[Category: Articles]] | [[Category: Economics]][[Category: Articles]] | ||
Revision as of 16:25, 1 July 2020
Adverse selection is the problem that arises when one party knows more about the quality of the good than the other, and as a result, the party with less knowledge must worry about ending up at a disadvantage.
Definition
According to Principles of Economics by Timothy Taylor (3rd edition),
- Adverse selection. The problem that arises when one party knows more about the quality of the good than the other, and as a result, the party with less knowledge must worry about ending up at a disadvantage.
According to Macroeconomics by Mankiw (7th edition),
- Adverse selection is the problem that arises when one party knows more about the quality of the good than the other, and as a result, the party with less knowledge must worry about ending up at a disadvantage.
