Category
page 1Asymmetric information
moral hazard
in economics, situation creating an incentive to take more risk (or otherwise change one's behavior) when another party will bear the costs
information asymmetry
economics term for when one party in a transaction has an advantage in information
economic agent
actor and decision maker in an economic model
principal–agent problem
conflict of interest when one agent makes decisions on another's behalf
information economics
branch of microeconomic theory that studies how information affects economics
adverse selection
selective trading based on possession of hidden information
contract theory
in economics, studies how economic actors can and do construct contractual arrangements, generally in the presence of asymmetric information
The Market for Lemons
1970 paper by the economist George Akerlof
signalling
in economics theory
Cheap talk
game-theoretic concept
Signaling game
a simple type of a dynamic Bayesian game
agency cost
loss due to agency problems when using an agent rather than doing something oneself
screening
in economics, a strategy of combating adverse selection in cases of asymmetric information by the agent(s) with less information
Pecking order theory
financial model
Credence good
Grossman-Stiglitz Paradox
Economic paradox on market efficiency