Adverse selection is the harm or benefit accruing to individuals affected as a result of a particular decision or behavior.

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Adverse selection refers to a situation where one party has access to information that the other party does not have, leading to an unequal distribution of benefits or harms. It is not a harm or benefit in and of itself but rather a concept used to describe the underlying problem that leads to imbalances in a given situation.

Adverse Selection Is the Harm or Benefit Accruing to Individuals