The adverse selection problem is an example of _____

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The adverse selection problem is a situation in which one party has better information than the other party about their characteristics or behavior. This is an example of hidden characteristics, as one party's traits or actions are not readily observable or known to the other party. Natural selection refers to the process by which organisms with certain advantageous traits are more likely to survive and reproduce. Hidden actions refer to situations in which one party's actions cannot be directly observed by the other party. The winner's curse is a phenomenon in which the winning bidder in an auction overpays for the item being sold. The common pool refers to a shared resource that is available to all members of a group.

The Adverse Selection Problem Is an Example of _____