New Study Reveals Young Drivers More Likely to Engage in Risky Behavior
The article looks at how different types of information problems affect car insurance in France. They studied moral hazard, adverse selection, and learning over time. The researchers found that new drivers (less than 15 years of experience) show signs of moral hazard. Drivers with less than 5 years of experience also have a mix of learning and moral hazard. But drivers with over 15 years of experience don't seem to have these issues.