Discuss the effects of black box insurance on drivers

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Reference no: EM131832424

"Black box" insurance is a new type of auto insurance that requires that the buyer install a black box in their car that monitors speed, distance traveled, acceleration, time of day, and other factors.

Discuss the effects of this type of insurance on different drivers and their behavior. The terms "adverse selection," "moral hazard," and "signaling" should all be relevant.

Reference no: EM131832424

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