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Market Signals
Indicators or signs derived from market behavior that provide information or data regarding the demand or supply conditions, influencing decisions.
Adverse Selection
A situation in which one party in a transaction has more or better information compared to another, leading to an imbalance and potentially poor decision-making, often discussed in insurance markets.
Asymmetric Information
A situation in which one party in a transaction has more or superior information compared to another, often leading to an unfair advantage.
Moral Hazard
The risk that one party to a transaction behaves in a way that is undesirable from the other party's point of view because the latter cannot effectively control the former.
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