individuals fail to take into account the full costs and benefits when making a decision e.g. they lack of perfect information so do not know the full benefits of a product so don
1 of 5
What is Asymmetric information ?
false information/lack of information provided e.g. cigarette companies don
2 of 5
What is moral hazard?
a special case of asymmetric info where consumers have more knowledge of future actions than producers. With insurance, people are more likely to be careless. The banks knew they would be bailed out so they took crazy risks.
3 of 5
What is a case of assymetric info?
at a dentist when there needs minimal treatment yet more is offered to make more money for the dentist
4 of 5
Who suffers the most from asymmetric info?
the customer
5 of 5
Other cards in this set
Card 2
Front
What is Asymmetric information ?
Back
false information/lack of information provided e.g. cigarette companies don
How come the 5th one is the customer? Shouldn't it be workers or at the very least consumers. Producers will suffer as they don't have the skilled labour they could have?.. I'm a bit confused.
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