Asymmetric Information Exercise 2018.docx - Asymmetric...

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Asymmetric Information Exercise 1. Go onto TradeMe Cars. See if you can find a car on auction that seems to be “to good to be true”. 2. Look up secondhand car dealers. What sort of names do they have? Would you trust them? 3. If you were a secondhand car dealer how would you convince buyers you were honest? 4. What sort of asymmetries in information might exist in these statements: “HSD Corporation announces a 26% increase in profits for the year”

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