Economics · Unit 2: Microeconomics

EC2.10 — Market failure: asymmetric information (HL only)

Economics · SL / HL · syllabus-mapped notes

EC2.10.1
Asymmetric information
Explain adverse selection as hidden information before a transaction, and moral hazard as hidden behaviour after it.
EC2.10.2
Responses to asymmetric information
Evaluate the government responses to information asymmetry, legislation and information provision, against the private ones, signalling and screening.

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