01_instructorppt17 The Economics of Information 管理经济学 教学课件.pptVIP

The Economics of Information State Farm Experiences the Hazards of Selling Insurance After studying this chapter, you should be able to: Define asymmetric information and distinguish between moral hazard and adverse selection. Apply the concepts of adverse selection and moral hazard to financial markets. Apply the concepts of adverse selection and moral hazard to labor markets. Explain the winner’s curse and why it occurs. Asymmetric Information Asymmetric Information Adverse Selection, Annuities, and Social Security Reform Asymmetric Information Adverse Selection and Moral Hazard in Financial Markets Moral Hazard, Big Time: The Accounting Scandals of 2002 Adverse Selection and Moral Hazard in Labor Markets Changing Workers’ Compensation to Reduce Adverse Selection Compensation that depends on how much workers sell will reduce adverse selection and moral hazard. The Winner’s Curse: When Is It Bad to Win an Auction? The Winner’s Curse: When Is It Bad to Win an Auction? Is There a Winner’s Curse in the Marriage Market? Want to Make Some Money? Try Auctioning a Jar of Coins Hurricane Damage Adverse selection Asymmetric information Moral hazard Principal-agent problem Winner’s curse ? 2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1st ed. CHAPTER 17 The Economics of Information c h a p t e r seventeen Prepared by: Fernando Yvonn Quijano LEARNING OBJECTIVES 1 2 3 4 In the market for insurance, asymmetric information leads to two problems: adverse selection and moral hazard. LEARNING OBJECTIVE 1 Asymmetric information When one party to an economic transaction has less information than the other party. Adverse Selection and the Market for “Lemons” Adverse selection The situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction. Reducing Adverse Selection in the Car Market New cars that need several major repairs during the first year or t