The problem of adverse selection created the opportunity for:

Question

Quizplus · Accepted Answer

Adverse selection, a situation where sellers have information that buyers do not, or vice versa, can lead to market inefficiencies. In the context of financial markets, this problem has led to the creation of a new market for trading information. This is because both buyers and sellers recognize the value of having accurate information, and thus, there is a demand for services that can provide this information, reducing the asymmetry and making transactions more efficient.

The Problem of Adverse Selection Created the Opportunity For