Sunday, March 14, 2010

Exchanges Based on Asyemmetric Information

The theme is as old as, well, as old as fairy tales.  The series has been a favorite with my one son.  This looks like it has potential for the classroom, as well.

But "buyer beware". We know the final product often doesn't live up to the previews (or advertising).

2 comments:

Gene Hayward said...

Lots of Micro concepts come to mind, in addition to Asymetrical information! Shrek as the "buyer" sure does not have enough information to make an informed decision. He let his "amimal spirits" (sorry for the pun) get the better of him...We as the consumers of Shrek movies have only the info from the trailer AND the from our past experiences with the Shrek franchise. Will this seques fall prey to "diminishing marginal returns/utility" as many/most sequels do? Remains to be seen if the producers can maintain our utility as we consume each additional minute of this new movie...:) Anyone have any more micro concept examples we can use???

Gene Hayward
www.haywardeconblog.blogspot.com

Tim Schilling said...

You are so right. In the time between posting, and returning from picking up son from a Boy Scout outing, I also came up with "unintended consequences" and "externalities."

Thanks for your comment.