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Property Loss
The term refers to the loss or damage of property due to various risks such as fire, theft, or natural disasters.
Adverse Selection
A situation where asymmetric information leads to the selection of undesirable risks by one party in a contract.
Lemons Problem
A market problem where the quality of goods cannot be accurately determined by the buyer due to asymmetric information, leading to an overall decline in product quality.
Adverse Selection
A scenario where one participant in a transaction possesses superior or more information than the other, frequently resulting in a disadvantageous result for the party with less information.
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