In economics, insurance, and risk management, adverse selection is a market situation where buyers and sellers have different information. The result is that participants with key information might participate selectively in trades at the expense of other parties who do not have the same information. In certain situations, the buyer may know the value of a good or service better than the seller. For example, a restaurant offering "all you can eat" at a fixed price may attract customers with a larger than average appetite, resulting in a loss for the restaurant.