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Paper 1 real world example: Asymmetric information

Going online to buy car insurance is one of those bewildering experiences. You are faced with screen after screen of information-gathering questions used by insurance company algorithms to assess how much of a risk you are. Questions include your age, number of years driving, how you plan to use your vehicle, any previous insurance claims, etc. Then you get a price quote.This process is called screening where insurance...

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