Asymmetric Information
Synopsis
Presents a conceptual framework for thinking about markets characterized by asymmetric information. Presents the standard economic analysis of "the lemons problem," and demonstrates how asymmetric information may lead to market inefficiencies and alter the distribution of surplus. Then discusses the potential to overcome these problems through credible signals of quality, illustrated by the example of education as a signal in labor markets. Concludes by briefly discussing the incentives of firms to screen consumers in order to price discriminate or to target particularly profitable consumer groups.
- Copyright:
- 1997 HBS
Book Details
- Book Quality:
- ISBN-13:
- Publisher:
- Harvard Business Publishing
- Date of Addition:
- 2016-08-03T15:31:38Z
- Language:
- English
- Categories:
- Usage Restrictions:
- This is a copyrighted book.