Nobel Prize 2001

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Brief overview of the theory of Nobel Prize laureates concerning incompleteness of information on the market

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Nobel Prize 2001

  1. 1. Nobel Prize 2001
  2. 2. On the market of light bulbs both customer and salesman are unaware of the quality of each single bulb
  3. 3. However, on the market of used cars only salesman is aware of the true quality of his product
  4. 4. Competition on this market leads to adverse selection, which in perspective is able to destroy the entire market
  5. 5. Nobel Prize 2001
  6. 6. According to the conception of market signals salesman can give his customers signals about quality of his product
  7. 7. Nobel Prize 2001 is a great example of how economists find out the problem and then deal with it

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