Explain how such innovations as the Internet have affected the prevalence of information asymmetries. 6. Explain how information asymmetries facilitated the corporate scandals that occurred in the early 2000s. 7. Explain how the choice of terms a real estate agent uses to describe a particular property conveys additional information about the property, and hence the price a potential buyer might be able to successfully offer the seller.
Using Freakonomics Chp. 2
Explain how such innovations as the Internet have affected the prevalence of information asymmetries.
6. Explain how information asymmetries facilitated the corporate scandals that occurred in the early 2000s.
7. Explain how the choice of terms a real estate agent uses to describe a particular property conveys additional information about the property, and hence the price a potential buyer might be able to successfully offer the seller.
8. Choose some evidence from Ch. 2 that illustrates how the combination of an information asymmetry and fear can lead to inefficient outcomes. Explain how the introduction of the element of fear makes the problem of the information asymmetry even worse.
9. Identify the evidence the authors offer to support their claim that real estate agents exploit an information asymmetry to their client’s detriment.
10. According to the voting data from the Weakest Link, which two groups of people are most likely to be discriminated against in that setting. What type of discrimination is being practiced in each case? Explain.
11. What do the data say about the characteristics of men and women who participate in Internet dating sites relative to the characteristics of the broader population? Summarize this evidence.
12. Assuming many of the people who use Internet dating sites are not being truthful when they describe themselves, what could motivate them to do so, knowing that if they ever actually met a date face-to-face, the truth would likely come out?
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