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seeb1999 seeb1999
wrote...
Posts: 480
Rep: 2 0
4 years ago
Health insurance companies face an asymmetric information problem because:

▸ buyers have superior information concerning their risk of illness or injury.

▸ the insurance companies and buyers both have equal information concerning the risk of illness or injury of those insured.

▸ companies have superior information concerning the risk of illness or injury of those insured.

▸ the probability of becoming ill or injured is unrelated to the insured person's occupation.
Textbook 
Microeconomics: Principles, Applications, and Tools

Microeconomics: Principles, Applications, and Tools


Edition: 8th
Authors:
Read 88 times
2 Replies

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Replies
wrote...
4 years ago
buyers have superior information concerning their risk of illness or injury.
seeb1999 Author
wrote...
4 years ago
Thank you
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