A pooling contract:
A)is the contract offered to all types of people in an insurance market.
B)can never be a bona fide equilibrium.
C)refers to the deal signed with the pool services worker.
D)is always preferred to discriminating contracts.

Question

Quizplus · Accepted Answer

Pooling contracts in insurance markets are designed to be offered to all types of people, regardless of their risk level, in contrast to separating or discriminating contracts which differentiate between different risk types.

A Pooling Contract