Information

Question 1

Stigler

Answer 1

1. Costly information acquisition > price differences with perfect information
2. Info is economic good > perfect info about info
3. No govt. intervention

Question 2

Akerlof

Answer 2

1. Asymmetric information > inefficiency
2. Adverse selection (market for lemons/insurance)
3. Efficiency wage theory
4. No govt. intervention ( free markets are efficient when info is perfect)