Asymmetric information (HL only)

When are markets unable to satisfy important economic objectives — and does government intervention help?

IB AIMS

2.10a Asymmetric information (as market failure) IB AIMS (aisc)

READINGS

2.10b Asymmetric information (as market failure) READINGS (aisc)

ASSESSMENT

2.10c Asymmetric information (as market failure) ASSESSMENT (asic)

Useful Presentations

Asymmetric Information (AISC)

Responses to asymmetric information (ASIC)

Useful reading

Tim Harford (aka The Undercover Economist) wrote a very accessible book for high schoolers, check out Chp.5 in particular; called The Inside Story. From this book a tv show was created, and we will watch a bit of it in class - cool

Useful Videos

Meet the expert: George Akerloff

b.1940-

University professor at Georgetown University and Koshland Professor of Economics Emeritus at the University of California, Berkeley.

Shared the Nobel Prize in 2001 with Stiglitz and Spence: for “for their analyses of markets with asymmetric information”.

Best known for his article, "The Market for Lemons: Quality Uncertainty and the Market Mechanism", published in the Quarterly Journal of Economics in 1970

Meet the expert: Joseph Stiglitz

b. 1943

University Professor at Columbia University

Former senior vice president and chief economist of the World Bank and is a former member and chairman of the (US president's) Council of Economic Advisers.

Shared the Nobel Prize in 2001 with Akerlof and Spence: for “for their analyses of markets with asymmetric information”.

Notable works: too many to list, but one that was influential to my own studies is 'Globalization and Its Discontents, [where he] argues that what are often called "developing economies" are, in fact, not developing at all, and puts much of the blame on the IMF.

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