Upload
felex-lau
View
1.145
Download
0
Embed Size (px)
DESCRIPTION
Citation preview
DBS IB Economics - Market Failure!Information Asymmetry Felex Lau Jon Liu Nick Wong
Ahh… it’s HL
1Information to!Sellers > Buyers
Information not told to consumers
Information not told to consumers
Consumers know less
than they should
Government Response?
Government Response?
Regulation
Government Response?
Regulation
Government Response?
Regulation
Provision of Information
Government Response?
Regulation
Provision of Information
Government Response?
Regulation
Licensure
Provision of Information
Government Response?
Regulation
Licensure
Provision of Information
Information to!
Buyers > Sellers 2
“Moral Hazard”
“Moral Hazard”
…but doesn’t face the cost of the risks.
The insurance market
Adverse Selection
Market of health insurance
Safety in workplace
Safety in workplace
Hiding safety risks
3Recap
Buyers > Sellers
Sellers > Buyers Government response: Regulation Provision of Information
Licensure
“Moral Hazard” Adverse Selection
Safety in Workplace
The End. Thanks!
References Bilingual Laws Informa1on System. Department of Jus2ce, n.d. Web. 24 Oct 2012. <h>p://
www.legisla2on.gov.hk/blis_ind.nsf/WebView?OpenAgent&vwpg=CurAllEngDoc*100*100*123#123> Coyoty. “Blue Screens of Life”. Photograph. Flickr. Yahoo, 26 Oct 2011. Web. 22 Oct 2012. <h>p://
www.flickr.com/photos/30679992@N06/6286930267/> Davidson, Kelly. “Shopping Cart”. Photograph. Flickr. Yahoo, 13 Jan 2011. Web. 24 Oct 2012.
<h>p://www.flickr.com/photos/kellydavidson/5352106637/> “Food labelling”. Centre for Food Safety. The Government of the Hong Kong Special
Administra2ve Region, 22 Aug 2012. Web. 24 Oct 2012. <h>p://www.cfs.gov.hk/english/consumer_zone/foodsafety_labelling.html>
Hao, Zheng. “食物标签:了解它为你的饮食做更健康的选择”. Nutri1on Duo. N.p., Aug 2010. Web. 24 Oct 2012.<h>p://nutri2onduoch.blogspot.hk/2010/08/blog-‐post.html>
“’How to Apply’ Series and FAQ”. Food and Enviornmental Hygiene Department. The Government of the Hong Kong Special Administra2ve Region, 27 Feb 2012. Web. 24 Oct 2012. <h>p://www.fehd.gov.hk/english/faq/licence/what_types_of_licences.html>
IB Learner Profile Booklet. Interna2onal Baccalaureate: Cardiff, 2008. Web. <h>p://ibo.org/programmes/profile/documents/Learnerprofileguide.pdf>
“iPhone 5 Teardown”. iFixit. N.p., n.d. Web. 22 Oct 2012. <h>p://www.ifixit.com/Teardown/iPhone+5+Teardown/10525/5>
lungstruck. “Medica2on”. Photograph. Flickr. Yahoo, 5 Mar 2010. Web. 24 Oct 2012. <h>p://www.flickr.com/photos/lungstruck/4409421695/>
Stolk, Gerard. “Sale”. Photograph. Flickr. Yahoo, 28 Dec 2011. Web. 22 Oct 2012. <h>p://www.flickr.com/photos/gerardstolk/6587076433/>
Who’s Photo?. “Council House safety net & lights”. Photograph. Flickr. Yahoo, 29 Dec 2010. <h>p://www.flickr.com/photos/whosphoto/5304003468/>