Akerlof claims that numerous institutions arise to counteract the effects of quality uncertainty and he provides...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Akerlof claims that "numerous institutions arise to counteract the effects of quality uncertainty" and he provides four examples of such counteracting institutions. Please provide two examples of institutions that counteract against the problems of asymmetric information. Briefly describe the specific problem that each institution is offsetting and exactly how each it mitigates the problem. Your examples do not need to come from Akerlof. Example 1: Enter your answer here Example 2: Enter your answer here Akerlof claims that "numerous institutions arise to counteract the effects of quality uncertainty" and he provides four examples of such counteracting institutions. Please provide two examples of institutions that counteract against the problems of asymmetric information. Briefly describe the specific problem that each institution is offsetting and exactly how each it mitigates the problem. Your examples do not need to come from Akerlof. Example 1: Enter your answer here Example 2: Enter your answer here
Expert Answer:
Answer rating: 100% (QA)
Quality uncertainty poses problems in the market as it creates market failure There are numerous ins... View the full answer
Posted Date:
Students also viewed these economics questions
-
Briefly describe four typical problems that often arise in merging relations and common techniques for addressing those problems.
-
Briefly describe the type of human behavior problems that might arise if budget goals are set too tightly. Discuss.
-
How do your answer to problems 16.5 and 16.6 provide insight into a JIT purchasing strategy?
-
In Problems 23 34, graph each system of linear inequalities. x - 2y 6 2x - 4y 0
-
The accompanying data on annual maximum wind speed (in meters per second) in Hong Kong for each year in a 45-year period were given in an article that appeared in the journal Renewable Energy (March,...
-
Data for the unadjusted trial balance of Mexican Riviera Tanning Salon at March 31, 2012, follow. .:. Adjusting data for March 2012 are: a. Accrued service revenue, $2,600. b. Supplies used in...
-
Zoe Borrillo, the accountant for Comfy Home Furnishings, was having difficulty completing the trial balance of the businesss general ledger. The balance of the Accounts Receivable Control account in...
-
Consider the following June actual ending balances and July 31, 2012, budgeted amounts for Oleans.com: a. June 30 inventory balance, $17,750 b. July payments for inventory, $4,300 c. July payments of...
-
1. An unpolarized light beam is incident on the polarizes of a polarization experiment and the intensity of light beam emerging from the analyzer is measured as 100 Lumens. Now, if the analyzer is...
-
Bartman Industries' and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2006-2011. The Winslow 5000 data are adjusted to include...
-
George Manufacturing had net income of $300,000 and declared preferred dividends of $25,000 during the current year. George started the year with 12,000 common shares outstanding. It issued 70,000...
-
Technology will soon exist such that individuals can choose the sex of their offspring. Assume that technology has now arrived and that 70 percent of the individuals choose male offspring. a. What...
-
Australian government legislation defines fuel containing more than \(1 \%\) ethanol as an ethanolblended fuel, but it limits the amount of ethanol in petrol to \(10 \%\). Suppose the demand curve...
-
According to U.S. government statistics, the cost of averting a premature death differs among various regulations. Car seat belt standards cost $100,000 per premature death avoided, while hazardous...
-
Kensington Corporation, Inc. (an October 31 fiscal year-end corporation) plans to purchase $2,700,000 of used office fixtures (7-year property), its only personalty acquired during the year....
-
Economists Michael Tanner and Stephen Moore of the Cato Institute recently calculated the hourly wage equivalent of welfare for a single mother with two children for each of the 50 United States....
-
Ethanol is flowing in a pipe and at all points completely fills the pipe. At point A in the pipe the gauge pressure is p and the cross-sectional area of the pipe is 0.0500 m. The other end of the...
-
When the Department of Homeland Security created a color-coded system to prepare government officials and the public against terrorist attacks, what did it do right and what did it do wrong?
-
Do any problems arise when translating physical assets and economic events into monetary units? Give one or two illustrations to support your answer.
-
Entries for the Warren Clinic 2015 income statement are listed below in alphabetical order. Reorder the data in proper format. Depreciation expense General/administrative expenses Interest expense $...
-
Great Forks Hospital reported net income for 2015 of \($2.4\) million on total revenues of \($30\) million. Depreciation expense totaled \($1\) million. a. What were total expenses for 2015? b. What...
Study smarter with the SolutionInn App