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SCOUT· 64%1h 13m·2023-04-10·Science
SCOUT· 64%1h 13m·2023-04-10·Science232 | Amy Finkelstein on Adverse Selection and Hidden Information
Sean Carroll's Mindscape: Science, Society, Philosophy, Culture, Arts, and Ideas · 232
If you knew exactly when every person was going to die, or require medical care, you could make a killing buying and selling insurance. Nobody knows these things, of course -- the future is hard to predict -- but some people know something about the future that other people don't. This sets up adverse selection: the…
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