Self selection allows students more latitude to be deeply involved with the learning process, thus fostering an interest in, as well as developing an ownership of, the reading process.
Students' self selection of books for their instructional reading program is a vital ingredient to helping students become hooked on reading, as well as to becoming independent learners.
10) However, the insurer can offer a menu which anticipates the decisions of high risk consumers on s and satisfies self selection and other constraints.
The market equilibrium contract menu can be determined by maximizing the expected utility of the low risks subject to the self selection constraint for high risks, an individual rationality constraint (participation) for high risks, an incentive compatibility constraint for high risks who buy the high risk policy and for high risks who might have purchased the low risk policy, and zero profit constraints for firms for the high and low risks.
The self selection constraint reveals that, in equilibrium, the high risks will be indifferent between (a) spending s.