What is the value of being able to change your mind?
6
We assume everyone has the same information
7
Why companies should be managed in the shareholders' interest
8
Contracting theory, how it affects shareholders
9
The principal-agent problem
10
What is an ideal trade?
11
Problems caused by information asymmetry
12
Examples of information asymmetry
13
Akerlof's paper 'The Market for Lemons'
14
Adverse selection and moral hazard
15
How to advertise for the next James Bond
16
How asymmetric information affects the labour market
17
Education makes you more employable
18
Should you work hard or 'work smart'?
19
Can getting angry help you in business?
20
How screening helps you get the information you're missing
21
How airlines get you to pay more for business class
22
Why banks are reluctant to give out loans
23
Who is most hurt by asymmetric information? + conclusion
24
Q&A session
Description:
Save Big on Coursera Plus. 7,000+ courses at $160 off. Limited Time Only!
Grab it
Explore the intriguing concept of asymmetric information in finance through this comprehensive lecture. Delve into how unequal access to information can impact financial transactions, from buying used cars to managing companies. Learn about net present value, discount rates, and the principal-agent problem. Discover the fascinating paradox of how more information can sometimes leave you worse off. Examine real-world examples of information asymmetry, including Akerlof's 'Market for Lemons' theory. Investigate how asymmetric information affects labor markets, education, and business strategies. Understand concepts like adverse selection, moral hazard, and screening techniques. Analyze how industries like airlines and banks leverage information asymmetry. Engage with a thought-provoking Q&A session that further illuminates this complex topic in finance.