逆ぎゃく選せん択たく

noun

adverse selection

Economics term for a situation where one party uses undisclosed information to their advantage, often discussed in insurance and financial markets.

• 保ほ険けん市し場じょうでは逆ぎゃく選せん択たくが起おこりやすい。

  Adverse selection tends to occur in insurance markets.

• 逆ぎゃく選せん択たくを防ふせぐために、情じょう報ほうの非ひ対たい称しょう性せいを減へらす必ひつ要ようがある。

  To prevent adverse selection, it is necessary to reduce information asymmetry.