1 / 7

Chapter 35

Chapter 35. Asymmetric Information. Common knowledge and private information . The latter leads to Asymmetric information , or Asymmetry of information. Akerlof model: the market for lemons. Density. Quality. Adverse selection as a hidden information problem. Moral hazard

Download Presentation

Chapter 35

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Chapter 35 Asymmetric Information

  2. Common knowledge and private information. The latter leads to Asymmetric information, or Asymmetry of information.

  3. Akerlof model: the market for lemons. Density Quality

  4. Adverse selection as a hidden information problem. Moral hazard as a hidden action problem.

  5. Signaling Two roles of education: To raise and to distinguish Productivities Spence model

  6. $ C(Y) for L wage system C(Y) for H Y* Y Best Choice of L, and of H

  7. Graph to show separating equilibria and pooling equilibria.

More Related