Category: Information Asymmetries
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Auction Theory
Looking into auction theory and the information asymmetries, among other problems, faced. Building on the previous article about information asymmetries, one specific example in which this can happen are auctions – there can be information asymmetries between buyers themselves, as it is unknown how much each potential buyer is willing to pay. So, the buyers…
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Information Asymmetries
Information is very important, so what happens when one party knows more than the other? Asymmetrical information is when one party knows more about the good or service being purchased than the other, resulting in the other party not receiving a product or payment of equal value to their product or payment. For example, a…
Economics 101 