The Impact Of Quality Uncertainty Without Asymmetric Information On Market Efficiency

The Impact Of Quality Uncertainty Without Asymmetric Information On Market Efficiency. Generally produces underestimation of product quality as well as systematic drops in prices and losses of market efficiency. The market effects of quality variability and uncertainty have classically been studied in the particular context of asymmetric information, focusing on the sellers' expected behavior and the phenomenon of adverse selection.

The market effects of quality variability and uncertainty have classically been studied in the particular context of asymmetric information, focusing on the sellers' expected behavior and the phenomenon of adverse selection. Introduction since george akerlof's seminal paper “the market for The instructor can conduct experiments in a virtual classroom, in which students using a computer are embedded in an online market playing the role of buyers.

Results show that both uncertainty and information asymmetry affect the level of market efficiency with information asymmetry having a pronounced impact.

We present an interactive simulation game designed to teach the market effects of quality uncertainty. Aug 01, 2007 · abstract. This study also shows that the spread of information through social networks can greatly mitigate this market failure. The instructor can conduct experiments in a virtual classroom, in which students using a computer are embedded in an online market playing the role of buyers.