Information asymmetry can apply to various social issues. For instance, in the healthcare sector, doctors typically have more information than patients, which can lead to issues like overtreatment. In the education sector, schools may have more information about the quality of education they provide than parents and students, leading to a lack of transparency. In the job market, employers often have more information about the company's situation than employees, which can lead to exploitation. In each of these cases, the party with more information can take advantage of the other, leading to social inequality.
Author Steven Levitt, working with journalist Stephen Dubner, shows how economic theories can be use...
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