Question: In Chapter 22, we analyzed situations in which there is asymmetric information between consumers and producers (as in the insurance market). Can you see how

In Chapter 22, we analyzed situations in which there is asymmetric information between consumers and producers (as in the insurance market). Can you see how the problems faced by an insurance company that does not know the risk-types of its consumers are similar to the problem faced by the monopolist who is trying to second degree price discriminate?

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