New Ep is up! If you aren’t already excited about insurance markets, this episode will convert you. Amy Finkelstein is a professor at MIT and co-author of Risky Business: Why Insurance Markets Fail and What to Do About It. Insurance is about risk management. But the markets are inefficient, sometimes wildly so. Sometimes they “function” and other times they fail, i.e., the death spiral. Either way, the price never seems right. That’s where adverse selection comes in. Think about annuities, long-term care insurance, towing insurance (AAA), product warranties, dental insurance (boo!), pet insurance, even divorce insurance. Read more about Amy here, and follow coauthors Iran Einav and Ray Fisman on Twitter. Buy the book here or at your favorite bookstore. If you were wanting to hear more about healthcare insurance markets specifically after listening to this episode, the great news is there’s a sequel coming, you can preorder We’ve Got You Covered. Check back in June so you don’t miss that interview.