Skip to main content

Adverse Selection

Meaning

Adverse selection describes a market or interaction imbalance where one party possesses more information than the other, leading to skewed outcomes. In a clinical context, this typically refers to individuals with pre-existing conditions or higher health risks being more inclined to seek specific health interventions, diagnostic tests, or wellness programs compared to those without such conditions or perceived risks. This differential participation can influence observed health data and intervention efficacy.