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Several economists have won Nobel prizes for the development of theory on adverse selection. Empirical economists have had some difficulty identifying adverse zelection in the
Several economists have won Nobel prizes for the development of theory on adverse selection. Empirical economists have had some difficulty identifying adverse zelection in the market place and have proposed that advantageous selection mayv alzo be important. Define both adverse and advantageous selection in the context of an insurance market (e.z. auto or health insurance). Is it possible that both exist in a given market
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