Information asymmetry can significantly affect the balance of power in a society. When one group has more information than another, it can use this to its advantage, often maintaining or increasing its power. This can be seen in the example of the Ku Klux Klan, which used information asymmetry to maintain an image of mystery and fear, thereby holding power. However, when this information was revealed, their power diminished significantly. Similarly, in other societal structures, those with more information can manipulate situations to their advantage, creating an imbalance of power.
Author Steven Levitt, working with journalist Stephen Dubner, shows how economic theories can be use...
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