Imperfect information 0.0 / 5 ? EconomicsImperfect informationA2/A-levelAQA Created by: daniellalimaCreated on: 19-12-16 12:39 The importance of information for decision making When attempting to maximise total utility, consumers are likely to possess imperfect information, so they make wrong decisions. 1 of 5 The significance of asymmetric information Asymmetric information - when one party to a market transaction possesses less information relevant to the exchange than the other 2 of 5 Adverse selection Refers to a situation where sellers have information that buyers do not, or vice versa, about some aspect of product quality 3 of 5 - - 4 of 5 - - 5 of 5
Comments
No comments have yet been made