asymmetric information
Good Used Cars, Cheap Health Insurance, and Successful Consulting Engagements
Tue, 2008-02-05 05:04 — Michael NygardWhy is it impossible to find a decent used car?
The economic theory of “asymmetric information” shows us what happens to a market in which one party holds important information about the quality of the goods or services. Health insurance is another market where the parties each hold significant information. We will examine what happens in these markets as a result of that asymmetric information.
