What are the consequences for the market for insurance

Assignment Help Financial Management

Reference no: EM131305140

An article in the Economist magazine observes: "Insurance companies often suspect the only people who buy insurance are the ones most likely to collect."

a. What do economists call the problem being described here?

b. If insurance companies are correct in their suspicion, what are the consequences for the market for insurance?

Reference no: EM131305140

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