When Those on the Informed Side of a Market Self-Select

question 163

Multiple Choice

When those on the informed side of a market self-select, the problem of __________ occurs.

• A)natural selection
• B)external benefits
• C)adverse selection
• D)the winner's curse
• E)the common pool

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Definitions:

Maladaptiveness

A characteristic of certain behaviors or traits that are counterproductive or ineffective in achieving desired outcomes in a given context.

95th Percentile

A statistical measure indicating that 95% of the data points fall below this value, often used to identify outliers or set benchmarks in various fields.

Narcissism

A personality trait characterized by an excessive focus on oneself, a need for admiration, and often a lack of empathy for others.

Cognitive Confusion

A state of being perplexed or puzzled, often resulting from unclear or conflicting information.