class 24 Lemons2 post

class 24 Lemons2 post - Class 24 Asymmetric Information...

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Class 24 Asymmetric Information: Asymmetric Information: Used Cars, Insurance, Quality Products…
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Today Example: Screening with Asymmetric Information Adverse Selection: Used Cars Insurance Q lit P i i Quality Provision Reputation as a Solution
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Screening Again: Software All Vista Versions are on the same DVD but: All Vista Versions are on the same DVD, but: Home Basic costs $99 for the full version, Home Premium, $159; Business; $199; and Ultimate, $259. Æ Wh t’ th i t f d i th “ lti t ” d t? What’s the point of damaging the “ultimate” product?
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