4 ms·
Adverse Selection[1] is a big problem with insurance in general. Insurance of this nature has adverse selection problems in spades. The people that think thei
by ljd 14y ago
Adverse Selection[1] is a big problem with insurance in general. Insurance of this nature has adverse selection problems in spades.
The people that think their startup is likely to fail will be most likely to contribute to the pool.
[1] http://en.wikipedia.org/wiki/Adverse_selection http://en.wikipedia.org/wiki/Adverse_selection