To Reduce Their Disadvantage Due to Buyers Having Private Information

Multiple Choice

To reduce their disadvantage due to buyers having private information, auto insurers try to

A) raise the price of all policies.
B) collect information from customers that relate to how costly the customer will be to the insurer.
C) create incentives for buyers to be high-cost buyers so that they will pay more for insurance.
D) reduce the costs of providing insurance.