Screening
Definition
An uninformed party designs choices to induce informed parties to reveal their type. The flip side of signaling.
Example
Insurance menus with different deductibles screen for risk type — risky drivers pick lower deductibles.
An uninformed party designs choices to induce informed parties to reveal their type. The flip side of signaling.
Insurance menus with different deductibles screen for risk type — risky drivers pick lower deductibles.