232 | Amy Finkelstein on Adverse Selection and Hidden Information

232 | Amy Finkelstein on Adverse Selection and Hidden Information

If you knew exactly when every person was going to die, or require medical care, you could make a killing buying and selling insurance. Nobody knows these things, of course -- the future is hard to predict -- but some people know something about the future that other people don't. This sets up adverse selection: the ability of one party to leverage information another party doesn't have, in order to gain an economic advantage. Economist Amy Finkelstein is an expert in this phenomenon, as well as the usefulness of empirical studies in economic research.

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Amy Finkelstein received her Ph.D. in economics from the Massachusetts Institute of Technology. She is currently John & Jennie S. MacDonald Professor of Economics at MIT. She is the co-director and research associate of the Public Economics Program at the National Bureau of Economic Research, and the co-Scientific Director of J-PAL North America. Among her awards are a MacArthur Fellowship and the John Bates Clark Medal. Her recent book, with co-authors Liran Einav and Ray Fisman, is Risky Business: Why Insurance Markets Fail and What to Do About It.


Episoder(419)

330 | Petter Törnberg on the Dynamics of (Mis)Information

330 | Petter Törnberg on the Dynamics of (Mis)Information

A characteristic of complex systems is that individual components combine to exhibit large-scale emergent behavior even when the components were not specifically designed for any particular purpose wi...

29 Sep 20251h 12min

329 | Steven Pinker on Rationality and Common Knowledge

329 | Steven Pinker on Rationality and Common Knowledge

Getting along in society requires that we mostly adhere to certainly shared norms and customs. Often it's not enough that we all know what the rules are, but also that everyone else knows the rules, a...

22 Sep 20251h 16min

328 | Mary Roach on Replacing Parts of Our Bodies

328 | Mary Roach on Replacing Parts of Our Bodies

Like any machine, bodies occasionally break down, and it's natural to go in search of a replacement part. Ancient societies featured simple prosthetics for teeth, noses, and limbs, while modern medici...

15 Sep 20251h 7min

AMA | September 2025

AMA | September 2025

Welcome to the September 2025 Ask Me Anything episode of Mindscape! These monthly excursions are funded by Patreon supporters (who are also the ones asking the questions). We take questions asked by P...

8 Sep 20253h 30min

327 | Cass Sunstein on Liberalism

327 | Cass Sunstein on Liberalism

"Liberalism," divorced from its particular connotations in this or that modern political context, refers broadly to a philosophy of individual rights, liberties, and responsibilities, coupled with res...

1 Sep 20251h 10min

326 | Natalie Batalha on What We Know and Will Learn About Exoplanets

326 | Natalie Batalha on What We Know and Will Learn About Exoplanets

In a relatively short period of time, exoplanets (planets around stars other than our Sun) have gone from an intriguing conjecture to an active field of scientific study, with over 5,000 confirmed dis...

25 Aug 20251h 12min

325 | Alvy Ray Smith on Pixar, Pixels, and the Great Digital Convergence

325 | Alvy Ray Smith on Pixar, Pixels, and the Great Digital Convergence

The world is becoming pixelated. As computers and other digital devices become ubiquitous, human knowledge and communication and information is gradually being converted into, and manipulated as, stri...

18 Aug 20251h 26min

324 | Elizabeth Mynatt on Universities and the Importance of Basic Research

324 | Elizabeth Mynatt on Universities and the Importance of Basic Research

It is not manifestly obvious that universities should be where most scholarly research is performed. One could imagine systems that separated out the tasks of "teaching students" and "generating new k...

11 Aug 20251h 13min

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