Zahava Moskowitz: Singled Out [Romance & Commitment 3/5]
18Forty Podcast
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What Is Information Asymmetry?
An information asymmetry is when you have a market where there are two parties in any market, but they don't have the same amount of information. George Acryloff has this theory, which he developed in his work called the market for lemons and he talks about used cars. He says that when you go to buy a used car, because there is this possibility that the dealer is trying to sell you a real clunker, something that does not work,. what ends up happening is the entire market gets depressed. If there is not real trust in a market, then everybody within that market suffers. So how do you deal with information asymmetries?
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