week 7 hwk - Describe either an adverse selection or moral...

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Describe either an adverse selection or moral hazard problem a company is facing. Describe the qualities that make it either adverse selection or moral hazard. What is the source of the asymmetric information? Who is the less-informed party? Are there any wealth-creating transactions not consummated as a result of the asymmetric information? If so, could you consummate them? What advice/recommendations would you give the company? Incorporate concepts from the readings and lectures. I believe a lot of people have discussed vehicles and the moral hazard problem that some of these companies are facing. I actually wanted to touch on health insurance. Let’s use Florida Health Plans insurance as an example. If potential insurance policy holders smoked then they may not be covered under the insurance. Florida Health

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