Asymmetric Information: Market Failures Market Distortions and Market Solutions Harvard Case Solution & Analysis

Presents a conceptual framework for thinking about the market characterized by asymmetric information. Gifts of the standard economic analysis of the "lemons problem", and shows how asymmetric information can lead to market failures and change the distribution of the surplus. Then discussed the potential to overcome these problems through a reliable signal quality, the example of education as a signal in the labor market. Finally, a brief discuss incentives for firms to screen customers for price discrimination or target groups of consumers is particularly beneficial. "Hide
by Kenneth Corts 7 pages. Publication Date: March 27, 1997. Prod. #: 797100-PDF-ENG

Other Similar Case Solutions like

Asymmetric Information: Market Failures Market Distortions and Market Solutions

Share This