Nobel Prize 2001
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Transcript of Nobel Prize 2001
![Page 1: Nobel Prize 2001](https://reader038.fdocuments.us/reader038/viewer/2022100501/55a0a39e1a28ab69778b4598/html5/thumbnails/1.jpg)
Nobel Prize 2001
![Page 2: Nobel Prize 2001](https://reader038.fdocuments.us/reader038/viewer/2022100501/55a0a39e1a28ab69778b4598/html5/thumbnails/2.jpg)
On the market of light bulbs both
customer and salesman are unaware of the quality of each single bulb
![Page 3: Nobel Prize 2001](https://reader038.fdocuments.us/reader038/viewer/2022100501/55a0a39e1a28ab69778b4598/html5/thumbnails/3.jpg)
However, on the market of used cars only
salesman is aware of the true quality of his product
![Page 4: Nobel Prize 2001](https://reader038.fdocuments.us/reader038/viewer/2022100501/55a0a39e1a28ab69778b4598/html5/thumbnails/4.jpg)
Competition on this market leads to
adverse selection, which in perspective is able to destroy the entire market
![Page 5: Nobel Prize 2001](https://reader038.fdocuments.us/reader038/viewer/2022100501/55a0a39e1a28ab69778b4598/html5/thumbnails/5.jpg)
Nobel Prize 2001
![Page 6: Nobel Prize 2001](https://reader038.fdocuments.us/reader038/viewer/2022100501/55a0a39e1a28ab69778b4598/html5/thumbnails/6.jpg)
According to the conception of market
signals salesman can give his customers signals about quality of his product
![Page 7: Nobel Prize 2001](https://reader038.fdocuments.us/reader038/viewer/2022100501/55a0a39e1a28ab69778b4598/html5/thumbnails/7.jpg)
Nobel Prize 2001 is a great example of
how economists find out the problem and then deal with it