Microeconomics 5.2: Asymmetric Information Flashcards
We cover the following issues related to asymmetric information – The market for lemons – Quality choice – Adverse selection and moral hazard – Signalling
1
Q
What’s ‘assymetric information’?
A
When either buyers or sellers lack information about the market in which
they are buying or selling, is a possible cause of
market failure
2
Q
A
