Tag: lemon-problem

Tag: lemon-problem

1 page tagged lemon-problem.

Pages

• Chapter 7: Information and Behavioral Economics — Economics 101

  Classical economics assumes perfect information and perfectly rational actors. The two new schools that replaced those assumptions — information economics (Stiglitz, Akerlof) and behavioral economics (Simon, Becker, Thaler) — explain how real markets cope with information gaps and human cognition, from used-car lemons to checkout-aisle candy.

Related tags

• information-asymmetry
• behavioral-economics
• choice-architecture
• bounded-rationality
• cognitive-bias
• nudging