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Discuss whether there is empirical evidence supporting the main three predictions of the Adverse selection models (Akerlof and Rothchild-Stiglitz models). First, explain these three main

Discuss whether there is empirical evidence supporting the main three predictions of the Adverse selection models (Akerlof and Rothchild-Stiglitz models). First, explain these three main predictions and then briefly discuss whether there is empirical support for each prediction.

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