# Adverse selection (also usually used in German; sometimes translated as Gegenauslese und Schechtauswahl or similar)

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- Post ID: 588270
- Modified: 2023-07-25T20:47:23+00:00
- Language: en

## Definition

In the financial market, participants with good creditworthiness withdraw and thus leave the field to less trustworthy partners (a situation in which financial market participation denotes a negative signal). - A situation in which one contracting party - for example: A situation in which one party to a contract - for example, the policyholder - has an informational advantage over another - the insurer - with respect to the particular facts and circumstances subject to the related contract, and in particular with respect to the risks associated with the related contract. - See factoring, unreal, financing premium, external, house bank, information, asymmetric, credit absorption, middle market bank, moral hazard, adverse selection, rating, risk, riskignorance, structural upheaval, subprime crisis, insurance uncertainties. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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