While adverse selection problems between insureds and insurers are well known to insurance researchers, few explore … adverse selection in the insurance industry from a capital markets perspective. This study examines adverse selection in the …

This article attempts to understand the outcomes when each party of an insurance contract simultaneously has superior … about general risks. I find that low-general-risk policyholders purchase insurance, while high-general-risk policyholders … are self-insured. Among the low-general-risk policyholders, high-specific-risk policyholders purchase full insurance …