What does Adverse Selection mean?
A situation where one party has information the other lacks, leading to an inefficient outcome.
Adverse Selection occurs when high-risk individuals are more likely to purchase insurance.
Adverse Selection in German, French, Spanish and Italian
GermanAdverse Selektion
also Negativauslese
Informationsvorteil einer Seite vor Vertragsschluss (z.B. Gebrauchtwagen).
FrenchAntisélection
also Sélection adverse
Problème d'information asymétrique avant la signature d'un contrat.
SpanishSelección adversa
Cuando una de las partes oculta información relevante en un trato.
ItalianSelezione avversa
Asimmetria informativa che precede la stipulazione di un contratto.
Common phrases with Adverse Selection
- occur in adverse selection
- insurance market adverse selection
- negotiation adverse selection
Synonyms and opposites for Adverse Selection
- Synonym Hidden information