Richard Holden, UNSW Australia Welcome to our series on economic theories that are changing the way we think. Today, Richard Holden explains how asymmetric information – when one party to a transaction knows more about the deal than the other – affects everything from car sales and IPOs, to credit costs and tattoos. 932 more words
Tag » Equilibrium
The other day, it started to rain, and I promptly responded by forgetting my umbrella on the seat beside me on the bus.
Today, in a weird full-circle way, I sat closer to the rear of the bus due to seats being occupied (I usually prefer the front), and as I squeeze into the last vacant row, a plain-looking umbrella is nonchalantly sitting on the seat next to mine. 20 more words