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Asymmetric Information – Adverse Selection Problem

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Author Info

  • Anamaria ALDEA
  • Dumitru MARIN

    (Academy of Economic Studies, Bucharest)

Abstract

The present paper makes an introduction in the contract theory starting with the definitions of asymmetric information and some of the problems that generate: moral hazard and adverse selection. We provide an insight of the latest empirical studies in adverse selection in different markets. An adverse selection model, based on Rothchild and Stiglitz is also present to give a perspective of the theoretical framework.

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File URL: http://www.ann.ugal.ro/eco/Doc%202007/AnaMaria%20Aldea,%20Dumitru%20Marin.pdf
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Bibliographic Info

Article provided by "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration in its journal Economics and Applied Informatics.

Volume (Year): (2007)
Issue (Month): 1 ()
Pages: 21-28

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Handle: RePEc:ddj:fseeai:y:2007:i:1:p:21-28

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Related research

Keywords: asymmetric information; adverse selection model; efficient contracts;

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