Information asymmetry can lead to an imbalance of power where one party can take advantage of the other. This can result in unfair business practices, exploitation, and can even perpetuate harmful ideologies, as seen in the example of the Ku Klux Klan. It can also lead to market failures, as one party may make decisions based on incomplete or inaccurate information.
Author Steven Levitt, working with journalist Stephen Dubner, shows how economic theories can be use...
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