topic modern ★ seed

Information Economics

Markets with asymmetric information behave differently than textbook models predict. Adverse selection, moral hazard, and signaling explain insurance markets, used car markets, and credit rationing.

#information #asymmetry #adverse-selection #moral-hazard #signaling

Sub-topics

Joseph Stiglitz concept

Nobel laureate (2001, with Akerlof and Spence). Showed that screening mechanisms allow uninformed agents to extract information. Critic of market fundamentalism and globalization's failures.