Information and market power
Đã giới thiệu| English | Ý nghĩa |
|---|---|
| adverse selection/ædˈvɜːs sɪˈlekʃn/ | lựa chọn tiêu cực |
| moral hazard/ˈmɒrəl ˈhæzəd/ | rủi ro đạo đức |
A decision you can investigate
- A buyer cannot observe the quality of a used device as well as the seller.
- A competitive-looking market can still allocate poorly when information differs.
Build the explanation
- Asymmetric information means one party knows more relevant information. Adverse selection 逆向选择 occurs before a transaction; moral hazard 道德风险 concerns changed behaviour after protection or agreement.
- Market power can raise price above marginal cost and restrict output.
Match the terms to their precise meanings.
Độ khó 2/5 · 140 xu + một phần thưởng nhỏ cho lần hoàn thành đầu tiên trong ngày
Use these definitions in the particular context of Information and market power.
Work through the evidence
- A verified warranty can help a high-quality seller signal quality, but only if the promise is enforceable.
- Compare disclosure, guarantees and regulation using reliability, costs and incentives, rather than assuming information is free.
A buyer rejects good devices because quality is hidden. Which problem fits?
Độ khó 1/5 · 100 xu + một phần thưởng nhỏ cho lần hoàn thành đầu tiên trong ngày
A verified warranty can help a high-quality seller signal quality, but only if the promise is enforceable. Compare disclosure, guarantees and regulation using reliability, costs and incentives, rather than assuming information is free.
Test the limits
- HL depth includes this market-failure analysis and quantitative market-power work; do not make it a compulsory SL examination requirement.
- A label alone earns little explanation: connect the information problem to a behaviour and outcome.
Which caution belongs to this particular task?
Độ khó 1/5 · 100 xu + một phần thưởng nhỏ cho lần hoàn thành đầu tiên trong ngày
HL depth includes this market-failure analysis and quantitative market-power work; do not make it a compulsory SL examination requirement. A label alone earns little explanation: connect the information problem to a behaviour and outcome.
This one Information and market power case settles the question for every setting.
Độ khó 1/5 · 100 xu + một phần thưởng nhỏ cho lần hoàn thành đầu tiên trong ngày
The case does not support that over-reading. The lesson states a limit on this case.
Apply and explain your answer
- A buyer rejects good devices because quality is hidden. Which problem fits?
- Adverse selection caused by asymmetric information.
Choose the two statements supported by this lesson.
Độ khó 2/5 · 140 xu + một phần thưởng nhỏ cho lần hoàn thành đầu tiên trong ngày
The concept and worked evidence support these claims; the stated limits rule out the universal shortcut.
Use the terms precisely
- adverse selection: Hidden information before a transaction distorts selection.
- moral hazard: Protection changes incentives for risk-taking or care.
A verified warranty can help a high-quality seller signal quality, but only if the promise is enforceable. Compare disclosure, guarantees and regulation using reliability, costs and incentives, rather than assuming information is free.
HL depth includes this market-failure analysis and quantitative market-power work; do not make it a compulsory SL examination requirement. A label alone earns little explanation: connect the information problem to a behaviour and outcome.
Asymmetric information means one party knows more relevant information. Adverse selection occurs before a transaction; moral hazard concerns changed behaviour after protection or agreement.
Write from online tutors
- Students pay before they can tell a careful tutor from a careless one. A checked sample lesson is available. After a school pays for a year, a tutor may prepare less.
- Say which problem is present before the payment and which appears after it. Naming the terms without that timing is not enough.
Students pay before they can tell a careful tutor from a careless one. A checked sample lesson is available. After a school pays for a year, a tutor may prepare less. Which problem comes before payment, and which comes after?
Adverse selection is the information gap before the transaction. Moral hazard is the change in behaviour after the agreement.
A tutor prepares less after the school has paid for the year. Which problem is that?
Độ khó 1/5 · 100 xu + một phần thưởng nhỏ cho lần hoàn thành đầu tiên trong ngày
The change comes after the school is protected by having paid. Adverse selection is the hidden quality before that payment.