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Screening (Economics)
In economics, screening is an action taken by an uninformed party to induce an informed party to reveal their private information. The uninformed party designs a mechanism or a menu of choices that causes the informed parties to self-select based on their hidden attributes. For example, an insurance company might offer different policies, such as those with varying deductibles and premiums, to separate high-risk from low-risk customers.
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The Economy 2.0 Microeconomics @ CORE Econ
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Screening (Economics)
Signalling (Economics)
Screening (Economics)
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