Unit 2.10: Asymmetric information (HL only)
This page contains a higher level only element of the market market failure section and highlights another example of market failure in an economy. I find that asymmetric information is a difficult concept to teach. For the majority of the IB economics course, we build a world where everyone is rational and the market always operates efficiently. Asymmetric information is a large factor in markets for used goods, insurance,...
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