Chapter 17 Markets with Asymmetric Information Bilingual lecturer:Cai Donghong Professor and Doctor
Chapter 17 Markets with Asymmetric Information Bilingual lecturer: Cai Donghong Professor and Doctor
What are the assumptions of classical economics?
◼What are the assumptions of classical economics?
For most of the book,we have resumed that consumers and producers have complete information about the economic variables that are relevant for the choices they face
For most of the book, we have resumed that consumers and producers have complete information about the economic variables that are relevant for the choices they face
Chapter Outline a1 Asymmetric information(非对称信息) 口2 Adverse selection(逆向选择) ▣3 Market Signaling(市场信息传递) 口4 Moral Hazard(道德风险) 口5 The Principal-Agent Problem(倭托代理问题)
1 Asymmetric information (非对称信息） 2 Adverse selection（逆向选择） 3 Market Signaling (市场信息传递） 4 Moral Hazard （道德风险） 5 The Principal-Agent Problem (委托代理问题） Chapter Outline
1 Asymmetric information(非对称信息) But frequently,a seller of a product knows more about its quality than a buyer.Workers know their own skills and abilities better than employers. Business managers know more about their firm's costs, competitive position,and investment opportunities than the firm's owners
1 Asymmetric information (非对称信息） ◼ But frequently, a seller of a product knows more about its quality than a buyer. Workers know their own skills and abilities better than employers. Business managers know more about their firm’s costs, competitive position, and investment opportunities than the firm’s owners