Asymmetric Information: Market Failures, Market Distortions, and Market Solutions Case Solution
This article sheds light on the framework regarding considering the markets characterized by asymmetric information. Presents the conventional evolution in terms of economy of the problem of lemons as well as it shows how asymmetric information can lead to market inefficiencies and change the distribution of excess.
Subsequently discusses the possibility to cure these difficulties through credible signs of quality, exemplified by the example of instruction as a sign in labor markets. Reasons by discussing the incentives of companies to price discriminate to screen consumers in order or to target consumer groups that are especially lucrative.
This is just an excerpt. This case is about STRATEGY & EXECUTION
PUBLICATION DATE: March 27, 1997
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