Information Failure - Topical Examples | tutor2u Economics

Here are some recent articles and news features covering aspects of information failure in markets.

Bounded rationality

This is a terrific enrichment article covering the causes and effects of bounded rationality. Read A snippet on bounded rationality

Smart drug use by students

This video from the BBC interviews some students who continue to take smart drugs despite a poor understanding of their long-term health risks. Consumers might be making ill-informed choices by under-estimating their own internal costs in the long term from the search for a quick fix.

Plastic particles found in bottled water

An important investigation here from David Shukman at the BBC reporting on findings that some brands of bottled water contain plastic particles. Part of the wider debate over the externalities of plastic pollution and information gaps among consumers about the private and external costs from consumption,

Salt content of Chinese takeaways

Should Chinese takeaways be subject to mandatory health warnings about the amount of salt content?

Asymmetric information 

A quality article here from Bloomberg (2016) n the root causes of asymmetric information in financial markets

Insider information - asymmetric information in financial markets as activist investor Carl Icahn sells shares days before US steel tariffs are unveiled

The Theory of Lemons is well explained in this short video from Marginal Revolution

Asymmetric Information and Used Cars

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