Asymmetric information refers to a situation where people who pose the greatest risk to insurers are the ones who buy insurance.

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Asymmetric information refers to a situation where one party in a transaction has more or superior information compared to another. This concept does not specifically describe the scenario where people who pose the greatest risk are the ones who buy insurance; that scenario is more closely related to the concept of adverse selection.

Asymmetric Information Refers to a Situation Where People Who Pose