2min chapter

Think Like An Economist cover image

S E23: Private Information - I Know Something You Don’t Know

Think Like An Economist

CHAPTER

Is There a High Deductable for Insurance?

Government helps theinsue ance industry out, because this is such a big problem. Governments make it illegal for you to lie to an insurance company. It's called insurance fraud. Businesses can also do clever things to get customers to reveal a bit more about themselves. Strategy is the seller, miht charge a high deductable for an insurance policy. When buyers know something that sellers don't,. Are there other ways to fix this problem? I mean, could sellers find out more about buyers? Yes.

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