Information asymmetry is prevalent in many areas of society. For instance, in the healthcare industry, doctors typically have more information about medical conditions and treatments than patients. In the financial sector, brokers and financial advisors often have more knowledge about investment opportunities than individual investors. In the job market, employers often have more information about the company and the role than job applicants. In each of these examples, one party has more information than the other, creating an imbalance or asymmetry.
Author Steven Levitt, working with journalist Stephen Dubner, shows how economic theories can be use...
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