Adverse selection
the process of singling out potential customers who are considered higher risks than the average.
Contemporary Examples
So some insurers exited the markets, while the ones that stayed charged very high prices to offset this “adverse selection.”
Why the Individual Mandate Is Effective and Efficient Dr. Jonathan Gruber March 26, 2012
noun
a situation in which sellers have relevant information that buyers lack (or vice versa) about some aspect of product quality
Usage Note
business
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