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In this episode, we discuss with Eduardo Azevedo his research on adverse selection in insurance markets. Eduardo gives details on recent developments in genomic advances, also in light of the significant price decrease for obtaining the individual genome. We discuss the possible long-term effect on the insurance market (e.g. specific health insurances) if individuals had access to their genome and obtained their individual risk profile. Based on that we discuss the potential for adverse selection and Eduardos initial heuristic findings.
Eduardo Azevedo is Professor of Business Economics and Public Policy at the Wharton School, University of Pennsylvania. His research focuses on market design, applied microeconomic theory, and industrial organisation.