Filtered dossier

adverse selection

  • 2 / 2
  • No visual on file
    Incentive Design Entry #0382

    Why a referral scheme attracts the wrong customers

    Paying for introductions selects the people most responsive to being paid. Volume rises and average customer quality moves in the other direction.

    Novice
    The hidden part #0382

    An incentive selects who responds to it. A per-head fee replaces the referrer’s judgement with their willingness to be paid.

    Open file
  • No visual on file
    Market Signals Entry #0422

    The reason a returns policy shapes who buys

    Terms are not neutral packaging around a price. They are a filter, and the customers they attract differ from the ones they deter.

    Adept
    The hidden part #0422

    Terms sort customers before they sort transactions. A returns policy is a selection instrument filed in the wrong department.

    Open file