Tuesday, February 27, 2007
Worst Adverse Selection Problem EVER
Anyhow, I was at the airport security line today when I noticed a piece of luggage with a Hedonism bag tag. For those of you who don't know, Hedonism is an adult-oriented all-inclusive vacation resort where people basically go to hook up with strangers. I quickly scanned the surrounding area to discern whose bag it was. The candidates were either a hippie woman in her late 40s who looked like the love-child of Sheryl Crow and a California Raisin or a sweet old grandmother in her 70s. I just assumed it was the hippie and thought to myself, "Adverse selection in action."
I started wondering if there's also moral hazard at work at Hedonism. Do people just lower their standards and really just start hooking up with strangers they normally wouldn't? As I was thinking about this, I saw the Sheryl Crow/California Raisin woman walking to the gates without the Hedonism bag! I guess there's some fire left in grandma after all!
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