If very damaging, asymmetries can destroy markets- causing them to unwind from the top- this is the adverse selection problem. People with high quality products remove them from the market due to the price being an average… the quality drops, then the price drops again.. and you end up with a cycle.
Michael Spence — If very damaging, asymmetries can destroy markets- causing t
If very damaging, asymmetries can destroy markets- causing them to unwind from the top- this is the adverse selection problem. People with high quality products remove them from the market due to the price being an average… the quality drops,…