Information comes from many different sources. Social media, tv, radio, news sites, newspaper, magazines, websites, eBooks, books, perhaps I missed some.
Nowadays with the end/no-end of the pandemic, recession, depression, Russia-Ukraine war, we are faced with “INFORMATION” issues, we are being fed with half truths, misleading information; we are told about food shortages, car shortages, baby food shortages and so on.
This leads me to reconsider one of important things in economics… the question of adverse selection… this question arises when the lack of information limits the quality of goods exchanged.
Because potential buyers have less qualified information about the quality of goods, suppliers are likely to offer a lower price for the goods that discourages vendors from offering higher quality goods like Japan in the 60’s and China until recent years.
As an example – the recent baby food shortage, people were afraid that the situation will force lower quality baby food to be imported to the USA due to the panic among young mothers. I don’t really know how it ended, whether is has ended, whether a solution was found and what the status is, very frustrating, nevertheless it has been so for years – when the hype is over, all information sources close their doors on the subject so to speak and move on to other hypes.
Are we going towards a “market for lemons”: a market in which only low-quality products (“lemons”) are offered for sale? Are we heading into years of low-quality products like cars, food, or even services?
Where you in the market to buy a used car or invest in a home recently?
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