Adverse Selection ·
The Insurance Death Spiral
un
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.com · Akerlof / Rothschild-Stiglitz · premium → exit → premium
Premium
$3,600
Pool size
1,000
Beat
—
Low-risk insured ($2,000/yr)
High-risk insured ($10,000/yr)
Premium level
Exited the pool
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.com · Adverse Selection