In our policy analysis subject, the professor cited asymmetry of information as one of the reasons why markets fail. This is where one party has more information about a good’s attributes than the other, and one cannot observe a good’s attribute until one chooses to consume it. Consumers are usually affected by this because unless we try a product, we do not really know if it is good or not, effective or ineffective. But this is also true for sellers of products like insurance because they do not really know how long you will actually live. What they have are probabilities that a person of this age range will live up to a certain number of years. That is why insurance quotes without personal information required are not so common since agents have to know some basic information about you to give you an appropriate quote. Information is really important for both buyers and sellers for the less likely failure of the market.
Passenger Talesstories about my experiences as a traveler and passenger
