Information asymmetries between buyers and sellers are far more prevalent than typically taught in introductory microeconomics, and they cause markets to function poorly when gaps are large; reducing these asymmetries through signaling, disclosure, and transparency is crucial for market function.
causalpending
Speaker
Michael SpenceEvidence Quote
“there are many many situations in which buyers and sellers have uh different levels of knowledge about what what the products or services are um their characteristics and so on... markets perform astonishingly poorly if those gaps are big and remain”
Source
Nobel Prize-Winning Economist Sees Era Of "Permacrisis" Ahead | Michael Spence (w/ Adam Taggart)— Adam Taggart | Thoughtful Money®Created: 8/11/2026, 1:51:12 AM
My Notes
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