Microeconomics: Information
Choice Paralysis (9/2/2005)
Too many choices might lead to decision paralysis due to information overload.
Too many choices might lead to decision paralysis due to information overload.
Crystal Ball (6/22/2006)
Better information on risky events may lead to market failure due to adverse selection.
Better information on risky events may lead to market failure due to adverse selection.
Grade A Material (8/1/2002)
In the absence of perfect information, insurers charge premiums according to classes of risks rather than individual risks.
In the absence of perfect information, insurers charge premiums according to classes of risks rather than individual risks.
Health Risk is a Matter of Life and Death (6/22/2006)
Health insurance premiums tend to be high for individual policies because of adverse selection and moral hazard.
Health insurance premiums tend to be high for individual policies because of adverse selection and moral hazard.
If It Is Too Good To Be True! - youtube cartoon (10/8/2017)
The simple-minded addiction to the efficient market hypothesis can lead to super-rational behavior.
The simple-minded addiction to the efficient market hypothesis can lead to super-rational behavior.
Insurance at Risk (11/10/2000)
Genetic test results on fatal diseases could lead to adverse selection of membership in life and health insurance if unfavorable results are concealed from insurers.
Genetic test results on fatal diseases could lead to adverse selection of membership in life and health insurance if unfavorable results are concealed from insurers.
Joint Liability as Loan Collateral (8/16/2000)
The Grameen Bank in Bangladesh uses joint liability as a screening device to overcome insufficient information on the soundness of individual loan projects and to circumvent the dangers of providing loans without collateral among the poor.
The Grameen Bank in Bangladesh uses joint liability as a screening device to overcome insufficient information on the soundness of individual loan projects and to circumvent the dangers of providing loans without collateral among the poor.
Lemon Laundering (6/22/2006)
Poorly informed consumers usually end up getting stuck with lemon products which are passed around to avoid capital loss.
Poorly informed consumers usually end up getting stuck with lemon products which are passed around to avoid capital loss.
May the Best Brand Win! (11/9/2001)
Because well-known brands can signal quality and integrity amid consumer ignorance, brands could stabilize market share and enhance brand-owners' ability to charge premium prices.
Because well-known brands can signal quality and integrity amid consumer ignorance, brands could stabilize market share and enhance brand-owners' ability to charge premium prices.
Mistaken Identity (2/2/2000)
A mistaken identity can confer temporary competitive advantage to a business because of insufficient information on the part of naïve customers.
A mistaken identity can confer temporary competitive advantage to a business because of insufficient information on the part of naïve customers.
Phone Power (2/26/2005)
Mobile phones that require less fixed investment and maintenance can extend telecommunications to areas that copper wires might have taken decades to reach.
Mobile phones that require less fixed investment and maintenance can extend telecommunications to areas that copper wires might have taken decades to reach.
Raiders of the Net (2/8/2005)
Controlling the distribution of products and the provision of after-sale service considerably reduce free riding of online shoppers on offline stores for product information.
Controlling the distribution of products and the provision of after-sale service considerably reduce free riding of online shoppers on offline stores for product information.
The Blind Leading the Blind (12/8/2000)
An informational cascade occurs when people blindly follow the early movers, but can be quickly reversed in the light of trusted information.
An informational cascade occurs when people blindly follow the early movers, but can be quickly reversed in the light of trusted information.
The Brand Game (9/11/2007)
Chinese companies try to move up the value chain by buying established brands.
Chinese companies try to move up the value chain by buying established brands.
The Evolution of Defectors and Cooperators (8/13/1999)
There is selective advantage in being always honest even when it may be disadvantageous to do so at times.
There is selective advantage in being always honest even when it may be disadvantageous to do so at times.
Too Little vs Too Much Panda-ing - youtube cartoon (3/12/2015)
You could have too little or too much of a good thing.
You could have too little or too much of a good thing.
