Imperfect Market information (Unit 1)
- Created by: Jake Da Floatilla Bird
- Created on: 15-04-13 17:00
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symmetric information when all the agents have the same information
Assymetric information - occurs when one party involved in the market transaction has more knowledge than the other
Asymmetric information can cause market failure
Examples of asymmetric information leading to market failure:
- mechanics has more knowledge = lies to consumer = consumer pays…
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