Asymmetric Information

Discusses the effects of asymmetric and incomplete information on markets.

[@samiatolopoenia4438]

thank you so much for this! we need more videos from you.

[@KatherineSilzCarson]

Thank you for watching! When I get some free time - I'll make some more. I am open to requests!

[@savigera844]

Really really ...helpful...thank you so much.

[@KatherineSilzCarson]

Thank you for watching!

[@bettyna01]

Thank you very much, it really helps me to understand these concept.

[@KatherineSilzCarson]

Thank you for watching!

[@aswathsrinivasan7154]

This video is gold. Thank you.

[@KatherineSilzCarson]

Thank you for watching, Aswath!

[@xxMusicxSpeaksxx]

Thank you for this! I’d like to ask though, what’s a possible solution for the moral hazard of risky drivers with car insurance?

[@KatherineSilzCarson]

Thank you for watching. With car insurance, because insurance companies can partially observe (e.g. how many tickets a driver has received, how many accidents they have been in) whether or not a driver engages in risky behavior, they can prevent moral hazard, or at least deal with it, by pricing behavior according to a driver's risk. This is particularly true now that some insurance companies use those "snapshot" devices that track drivers' behavior. Although they are advertised as a way to help drivers save money, they are also another way for insurance companies to observe the extent to which a driver engages in risky behavior. Hope this helps!

[@mahalakshmi9561]

understood perfectly ... thanku mam

[@KatherineSilzCarson]

Thank you for watching!

[@tompcd1189]

excellent video, thank you

[@KatherineSilzCarson]

Thank you for watching!

[@bholaprasadbaranwal5722]

thank u :)

[@KatherineSilzCarson]

You're welcome! Thank you for watching!

[@abdallesalah3164]

Thank you

[@KatherineSilzCarson]

Thank you for watching!

[@sagarkumawat7417]

Hal r Varian is your source M I right???

[@KatherineSilzCarson]

Sagar, yes, these videos are for a course I taught that used Varian's Intermediate Microeconomics as the textbook. Thank you for watching!

[@sagarkumawat7417]

@@KatherineSilzCarson thanks to make this topic understandable. . . Btw m too a economics aspirant My life revolves around economics

[@KatherineSilzCarson]

@@sagarkumawat7417 So glad you enjoy economics. Keep up the good work!

[@g.kakhukhing8951]

Microeconomics