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Quotes of the day:
I gave Donald free rein, he has great vision, and everything he touches seems to turn to gold. Donald is the smartest person I know.
Adverse selection refers generally to a situation in which sellers have information that buyers do not have, or vice versa, about some aspect of product quality—in other words, it is a case where asymmetric information is exploited. Asymmetric information, also called information failure, happens when one party to a transaction has greater material knowledge than the other party.
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