Wealthy people often worry that others will seek to marry them only for their money. Isthis a problem of adverse selection?

Adverse selection is a concept in economics that refers to a situation where one party in a transaction has more or better information than the other party. The party with less information is at a disadvantage because they can't make an accurate decision.

In the context of the question, the problem wealthy people face when worrying that others may want to marry them only for their money can be seen as a problem of adverse selection. Here's how:

1. Information Asymmetry: In this case, the person seeking to marry the wealthy individual (party A) may have hidden motives (wanting the wealth, not the relationship). The wealthy individual (party B) does not have complete information about party A's true intentions.

2. Selection Bias: Adverse selection occurs when the lack of information or the inability to properly assess it leads to a selection bias. In this case, party B may attract a disproportionate number of people primarily interested in wealth, not in a genuine relationship.

3. Negative Outcome: The result of this adverse selection could be a negative outcome for the wealthy individual (party B). If they marry someone who is only interested in their wealth, it could lead to an unhappy marriage or financial loss in the event of a divorce.

So, yes, this situation can be considered a problem of adverse selection because the wealthy individual lacks complete information about the true intentions of potential spouses, which could lead to a negative outcome.