Bec doms ppt on the economics of information and uncertainty

The Economics of Information and Uncertainty ,[object Object],[object Object]

The role of information ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Uncertainty & Risk ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

concept: expected value (EV) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

example 1: flip a coin ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object]

example 2: Lottery ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

back to example 1, coin toss ,[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object]

risk aversion ,[object Object],[object Object],[object Object],[object Object],[object Object]

then why does a lottery exist? ,[object Object],[object Object],[object Object]

Risk Pooling & Insurance ,[object Object],[object Object],[object Object],[object Object],[object Object]

example ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Insurance market ,[object Object],[object Object],[object Object],[object Object],[object Object]

Asymmetric Information ,[object Object],[object Object],[object Object],[object Object]

2 problems: ,[object Object],[object Object],[object Object],[object Object]

Adverse selection ,[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

example 1: life insurance ,[object Object],[object Object],[object Object],[object Object],[object Object]

example 2: bank loan ,[object Object],[object Object],[object Object],[object Object]

example 3: used cars ,[object Object],[object Object],[object Object],[object Object]

example 4: ebay ,[object Object],[object Object],[object Object],[object Object],[object Object]

Moral Hazard ,[object Object],[object Object]

example 1: auto insurance ,[object Object],[object Object],[object Object],[object Object],[object Object]

example 2: bank loan ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

example 3: ebay ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Summary ,[object Object],[object Object],[object Object],[object Object],[object Object]

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