Perhaps the most famous and common application of adverse selection theory is in health insurance.
In the early 1950s, another doctoral student named Harry Markowitz posited a statistical approach to investment selection called Modern Portfolio Theory.
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The theory of adverse selection was first applied by George Ackerlof to the market for used cars in the 1970s.
The economic theory of adverse selection tells us that neither should exist.
Charles Darwin, by contrast, found a lead for his theory of natural selection in the whimsical hobby of pigeon fancying, where the birds showed an enormous variety of form and behaviour.
The theory of evolution by natural selection states the "fittest" animals or plants are more likely to survive and reproduce.
Wallace, who was born in Monmouthshire and also lived in Neath, was the co-discoverer of the theory of evolution by natural selection.
Scientist Alfred Russel Wallace, who proposed the theory of evolution by natural selection with Charles Darwin, corresponded with the great and good of 19th Century society.
BBC: Search for Alfred Russel Wallace's 19th Century letters
Letters written by scientist Alfred Russel Wallace, who proposed the theory of evolution by natural selection with Charles Darwin, will be published online for the first time.
These included well known naturalists such as Alfred Russel Wallace, who collected specimens in the Amazon and Malay Archipelago and independently formulated a theory of evolution by natural selection.
BBC: NEWS | Science/Nature | Darwin's letters archived on web
Darwin's theory - of random mutation followed by natural selection according to environmental suitability - changed science, changed the world.
But if individuals have the opportunity to pick better, more ideally suited entertainment from a far wider selection, they will take it, according to the theory of the long tail.
In theory, if you did manage to trace how the brain was shaped by natural selection, you might shed some light on how the mind works.
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