2.10
Asymmetric Information HL
Adverse selection, moral hazard, and responses to information problems.
You should be able to
- Explain asymmetric information as a source of market failure
- Distinguish adverse selection from moral hazard
- Evaluate government and private responses to asymmetric information
Materials to come
Notes on asymmetric information, adverse selection, moral hazard, signalling, and screening will be added here.
Materials to come
Practice questions for this topic will be added here.