This is the last chapter in the course. I hope you have enjoyed the course and are saddened to see it end. What concepts or theories did you find most interesting and/or useful? Is there an area where you changed your thinking?
And on the content in this chapter – Asymmetric Information and Adverse Selection is a topic that many of you find interesting (and me also). Here’s a video on how it effects the used car market:
Asymmetric Information and Used Cars (Links to an external site.)
How do you manage the affects of asymmetric information when you are shopping?
Thanks for the blog posts! I really enjoy reading everyone’s thoughts on the content!
I really enjoyed reading about the income change, budgets, and consumer choice changes with income affects. I was surprised to hear that 1 in 5 millionaires inherits the wealth, and so many squander the inheritance. I live in a place where it seems that ‘old money’ is all around me, so this is a surprising fact. I really enjoyed seeing how wages, labor supply, and the employment market work. I think the section on monopolies changed my mind a little bit. I grew up thinking all monopolies are bad, but in seeing how monopolies work, I think there is a lot more nuance.
I try and eliminate asymmetric information entirely. I usually know more about the RV, car, truck, or snowmobile I’m buying than the seller. This gives me an advantage so that I can make smart decisions. This model has worked for me almost all of the time buying and selling large ticket items. When it comes to smaller ticket items it is usually hit or miss. I really like Amazon’s reviews to help guide me through this process.
Dude.World 