In the market for insurance,sellers have
A) perfect information.
B) less information than buyers.
C) more information than buyers.
D) none of the above

Question

Quizplus · Accepted Answer

In the market for insurance, sellers typically have less information than buyers regarding the risk profile of the insured. This situation is known as information asymmetry, where the buyer (the insured) has more information about their own health, lifestyle, and risk factors than the seller (the insurance company).

In the Market for Insurance,sellers Have