Adverse selection in various insurance markets and the ways to deal with it (the experience of practical research)

The functioning of a modern economy can’t be studied on the basis of neoclassical models. They don’t include such phenomenon as asymmetric and incomplete information. They don’t take into account the possible risks of making decisions and don’t consider such effects of information asymmetry as adverse selection, moral hazard and opportunistic behavior of the parties. Based on the results of practical research of adverse selection and moral hazard in the various insurance markets, the ways to deal with these problems are analyzed and solutions in particular situations are proposed by the authors.