Adverse selection is a situation in which one party to an economic transaction has less information than the other party.

Name: Adverse selection is a situation in which one party to an economic transaction has less information than the other party.
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Adverse selection refers to a situation where one party in a transaction has more information than the other party, typically leading to an imbalance in the transaction that favors the more informed party.

Adverse Selection Is a Situation in Which One Party to an Economic