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Game Theory 101 (#76): Adverse Selection
Автор: William Spaniel
Загружено: 2018-02-06
Просмотров: 40781
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http://gametheory101.com/
Adverse selection occurs in transactions where one person knows the quality of a product and the other person does not. This can cause high quality products to not get sold for low prices. Thus, transactions at low prices only move low quality goods. The information asymmetry can cause markets to break down, having important implications for insurance, car sales, and real estate.
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