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Tagged with asymmetric-information pareto-efficiency
2 questions
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Information asymmetry and market failure
Markets with information asymmetry frequently result in a loss of efficiency relative to perfect information, see e.g.; moral hazard.
Yet I have seen the claim
Information asymmetry isn't a market ...
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Adverse Selection: Positive Selection of Worker Types (Mas-Collel)
I'm reviewing some question from Mas-Collel and I am stuck on a chapter 13 question related to adverse selection.
Consider a model of positive selection in which there are workers of two possible ...
