An article in the Wall Street Journal refers to the basic principle of insurancepooling risk in order

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An article in the Wall Street Journal refers to “the basic principle of insurance—pooling risk in order to minimize liability from unforeseen dangers.” In what sense does insurance involve pooling risks? How does the problem of adverse selection affect the ability of insurance to provide the benefit of pooling risk?

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Macroeconomics

ISBN: 9780135801741

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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