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Example of Runaway Selection. Theory of random sexual selection of mates. Used to explain passing on of useless or 'expensive' genes which may create liabilities. It's called 'runaway' selection because the gene traits carried on may become liabilities if carried to extremes. The genes may in fact exaggerate physical characteristics which makes the animal less able to survive, rather than more so, in normal evolutionary theory.
Moral hazardEdit. Adverse selection is related to the concept of moral hazard. Where adverse selection describes a situation where the type of product is hidden from one party in a transaction, moral hazard describes a situation where there is a hidden action that results from the transaction.