Chapter 17 Markets with Asymmetric Information
Chapter 17 Markets with Asymmetric Information
Topics to be Discussed a Quality Uncertainty and the Market for Lemons a Market Signaling ■Mora| Hazard a The Principal-Agent Problem Chapter 17 Slide 2
Chapter 17 Slide 2 Topics to be Discussed ◼ Quality Uncertainty and the Market for Lemons ◼ Market Signaling ◼ Moral Hazard ◼ The Principal-Agent Problem
Topics to be Discussed a Managerial Incentives in an Integrated Firm Asymmetric Information in Labor Markets: Efficiency Wage Theory Chapter 17 Slide 3
Chapter 17 Slide 3 Topics to be Discussed ◼ Managerial Incentives in an Integrated Firm ◼ Asymmetric Information in Labor Markets: Efficiency Wage Theory
Introduction a We will study how imperfect information influences resource allocation and the price system Chapter 17 Slide 4
Chapter 17 Slide 4 Introduction ◼ We will study how imperfect information influences resource allocation and the price system
Quality Uncertainty and the market for lemons a The lack of complete information When purchasing a used car increases the risk of the purchase and lowers the value of the car Chapter 17 Slide 5
Chapter 17 Slide 5 Quality Uncertainty and the Market for Lemons ◼ The lack of complete information when purchasing a used car increases the risk of the purchase and lowers the value of the car