Meanings
- uncountablebusinessThe process by which the price and quantity of goods or services in a given market is altered due to one party having information that the other party cannot have at reasonable cost.
The large number of "lemons" in the used-car market is the result of adverse selection.
1 more example
It is adverse selection that leads US workers who anticipate high family medical expenditure to seek employers with superior health insurance coverage for their employees.
Synonyms & antonyms
nounA situation where sellers have information that buyers don't (or vice versa) about some aspect of product quality.
Synonym sets from Open English WordNet, CC BY 4.0.
Cite this entry
adverse selection. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/adverse%20selection
“adverse selection.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/adverse%20selection. Accessed November 3, 2026.
WatkinsX Dictionary, s.v. “adverse selection,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/adverse%20selection.
Source: adverse selection on Wiktionary, CC BY-SA 4.0.