Market Failure and Efficiency · Market Failure

Asymmetric Information

Exploring how imbalances in information between buyers and sellers create market distortions.

Key Questions

  1. 1How does adverse selection lead to the collapse of certain insurance markets?
  2. 2What mechanisms can be used to reduce the information gap in the used car market?
  3. 3Who bears the costs of moral hazard in financial systems?

MOE Syllabus Outcomes

MOE: Market Failure and Efficiency - JC1
Level: JC 1
Subject: Economics
Unit: Market Failure and Efficiency
Period: Market Failure

Suggested Methodologies

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