EconLearn
AP MicroeconomicsGame Theory & Information

Screening

Screening is when a less-informed party designs choices to get an informed party to reveal hidden information.

Insurers offer different deductible–premium menus so high- and low-risk customers self-select; lenders use credit checks. Screening is the mirror image of signaling and helps reduce adverse selection.

Related terms

AP® is a trademark registered by the College Board, which is not affiliated with, and does not endorse, EconLearn.