Answer: adverse selection
Explanation:
From the question, we are told that an
insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy.
The idea above is called adverse selection. This is a situation whereby either the seller or the buyer believes that he or she has more information than the other person regarding a particular product.
The reinforcement schedule that is seen in the given
scenario above is the fixed ratio. This is a type of reinforcement where in
they usually rely on the operant conditioning principles in which an operant
conditioning is where the individual’s behavior has changed due to the
consequences involved.
