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4. The problem of adverse selection in insurance markets means it is generally a bad idea for com- panies to oer insurance at the same

4. The problem of adverse selection in insurance markets means it is generally a bad idea for com- panies to oer insurance at the same price for all potential customers. Why do we see some companies (such as those selling \trip" insurance that refunds money to those who can't take their planned trips) do exactly this?

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