Markets with Asymmetric
Information
The Akerlofs
Lemons Problem
Akerlofs Lemons Problem
The Market for Used Cars
Assume
Two kinds of cars high quality and low
quality
Buyers and sellers can distinguish between
the cars
There will be two markets one fo
Moral Hazard
Moral hazard: asymmetry in information/inability
to control behavior after the deal
Moral Hazard is the risk that one party of a transaction
might change his/her behavior after the deal, and because
of the deal, in a way that is undesired b
PrincipalAgent
Problem
1
The PrincipalAgent Problem
In all businesses, owners cannot completely
monitor their employees
In corporations, owners (stockholders) cannot
completely monitor managers (BOD)
managers are better informed than owners.
This crea
The Effects of the
Internet on the
Economy
Effects of the Internet on the Economy
There are good reasons to believe that the
internet has improved efficiency and
productivity. There are three major sources of
economic gains from the internet:
Gains from
Asymmetric Information
Symmetry in information
It refers to a situation in which the two parties involved in a
transaction (a deal) have access to exactly the same
information. Therefore, none of the parties enjoys an
informational advantage over the oth
Adverse Selection in the
Market for Credit
In the market for credit, adverse selection occurs
because the potential borrowers who are the
most likely to produce an undesirable (adverse)
outcome, i.e. those with high probability of
default, are the ones wh
Chapter 03 - Describing Data: Numerical Measures
Chapter 03
Describing Data: Numerical Measures
True / False Questions
1. A value that is typical or representative of the data is referred to as a measure of central
location.
True False
2. The arithmetic m
CHAPTER 3
DESCRIBING DATA: NUMERICAL MEASURES
Name _
_
Part I
Section _
Score
Select the correct answer and write the appropriate letter in the space provided.
_ 1. The arithmetic mean is computed by
a. finding the value that occurs most often.
b. finding
Chapter 07 - Continuous Probability Distributions
Chapter 07
Continuous Probability Distributions
True / False Questions
1. The Empirical Rule of probability can be applied to the uniform probability distribution.
True False
2. Areas within a continuous p
Chapter 02 - Describing Data: Frequency Distributions and Graphic Presentations
Chapter 02
Describing Data: Frequency Tables, Frequency Distributions and Graphic
Presentation
True / False Questions
1. A frequency distribution groups data into classes show
Chapter 06 - Discrete Probability Distributions
Chapter 06
Discrete Probability Distributions
True / False Questions
1. The Poisson probability distribution is always negatively skewed.
True False
2. A random variable is assigned nominal or numerical valu
Chapter 05 - A Survey of Probability Concepts
Chapter 05
A Survey of Probability Concepts
True / False Questions
1. Based on a classical approach, the probability of an event is defined as the number of
favorable outcomes divided by the total number of po
CHAPTER 1
WHAT IS STATISTICS?
Name _
Score _
Section _
Part I Classify the following sets of data as qualitative or quantitative.
_ 1.
The religious affiliations of college students
_ 2.
The height of each member of a basketball team
_ 3.
Students scores
Chapter 04 - Describing Data: Displaying and Exploring Data
Chapter 04
Describing Data: Displaying and Exploring Data
True / False Questions
1. A dot plot and a scatter diagram are different names for the same graph.
True False
2. A dot plot is an easy wa
Chapter 01 - What is Statistics?
Chapter 1
What is Statistics?
1.
a.
c.
e.
Interval
Interval
Ordinal
b.
d.
f.
Ratio
Nominal
Ratio
2.
a.
c.
Ratio
Ratio
b.
d.
Nominal
Ratio
3.
Answer will vary.
4.
a.
c.
b.
d.
Population
Sample
5.
Qualitative data is not num
Copyright 2007 Ramez Elmasri and Shamkant B. Navathe
Slide 9- 1
Chapter 9
Introduction to SQL Programming
Techniques
Copyright 2007 Ramez Elmasri and Shamkant B. Navathe
Chapter Outline
9.1 General Constraints as Assertions
9.2 Views in SQL
9.3 Database P
Copyright 2007 Ramez Elmasr and Shamkant B. Navathei
Slide 3- 1
Chapter 3
Data Modeling Using the EntityRelationship (ER) Model
Copyright 2007 Ramez Elmasri and Shamkant B. Navathe
Chapter Outline
Overview of Database Design Process
Example Database Appli
Copyright 2007 Ramez Elmasri and Shamkant B. Navathe
Slide 4- 1
Chapter 4
Enhanced Entity-Relationship
(EER) Modeling
Copyright 2007 Ramez Elmasri and Shamkant B. Navathe
Chapter Outline
EER stands for Enhanced ER or Extended ER
EER Model Concepts
Include
What type of root system is shown here?
A) Fibrous root
B) Taproot
C) Combination root
D) Hair root
What kind of vernation does this plant have?
A) Folded
B) Rolled
C) Triangular
D) Can't tell by this picture
When digging up a soybean root to look at the
Inventory Management
Bonus Problems - (5 points each problem)
1. Custom Computers Inc assembles custom home computer systems. The heat sinks needed are bought for
$12 each and are ordered in quantities of 1300 units. Annual Demand is 5200 heat sinks. The
Inventory Management
Part a:
Greens Grower, a local nursery uses 1560 bags of plant food annually. Green Grower works 52
weeks per year. It costs $10 to place an order for plant food. The annual holding cost rate is $5
per bag. Lead time is one week.
1. C
Public Disclosure Authorized
POLICY RESEARCH
WORKING
PAPER
L807
Public Disclosure Authorized
The Ghost of FinancingGap
How the Harrod-Domar Growth Model Still Haunts Development Economics
The qhost of a nq-dead arowth model still haunts aid
to developing
How Much Did Your Seat Cost?
Page 1 of 5
July 20, 2003
How Much Did Your Seat Cost?
By DAVID LEONHARDT
s they file into their orchestra seats just before 8 p.m., there is little to suggest that they have not all paid the same price. They are about to watc