De Donder, Philippe (contributor); … - 2006
(adverse selection) or to be
able to perform some relevant action that is hidden to the insurer (moral
hazard). In either case … case of adverse selection, high risk individuals buy more insurance while,
in moral hazard settings, agents who, for some …
empiricalplausibilitybeenappreciated.Inpart, thismaybebecauseittakesa
theory to beat a theory, and the alternative to the standard adverse selection …