♪ [music] ♪ – [Narrator] The famous comedian Groucho Marx once said, – [Groucho] “I don’t want to belong to any club that would accept me as a member.” – [Narrator] Believe it or not, the economist George Akerlof won a Nobel Prize for analyzing when Groucho-type reasoning makes sense… Continue Reading Asymmetric Information and Used Cars

♪ [music] ♪ – [Professor Tyler Cowen] In the previous video, we introduced the ideas of asymmetric information, and adverse selection and we applied those ideas to the used car market. Let’s take those same basic concepts, and build a basic model of health insurance. Suppose that potential health insurance… Continue Reading Asymmetric Information and Health Insurance