Adverse Selection and Market Failure
{"Image DocumentName": "Adverse Selection and Market Failure", "Image ImageDescription": "Note, lenders know the distribution of low and high risk borrowers. But do not know the exact type of any given borrower. If lenders charge a low interest, losses to high risk borrowers will be more than profits from low risks. To compensate the loss of default if lenders charge a high interest, low risk borrowers look elsewhere \u2014leaves just the high risk borrowers.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}