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  3. Study Set
    Microeconomics Theory with Applications
  4. Exam
    Exam 20: Assymetric Information and Market Behaviour
  5. Question
    A Pooling Contract
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A Pooling Contract

Question 1

Question 1

Multiple Choice

A pooling contract:


A) is the contract offered to all types of people in an insurance market.
B) can never be a bona fide equilibrium.
C) refers to the deal signed with the pool services worker.
D) is always preferred to discriminating contracts.

Correct Answer:

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