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Self-revelation

From HandWiki - Reading time: 1 min

In economics, self-revelation is a property of a mechanism where each agent maximizes their utility (or expected utility) by revealing their true type. Self-Revelation is also used as a theme in many literary works.

Self-revelation is widely used in insurance market. This is when high risk parties and low risk parties choose to pay a different risk premium.





Licensed under CC BY-SA 3.0 | Source: https://handwiki.org/wiki/Finance:Self-revelation
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