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Choice Paralysis (9/2/2005)

Too many choices might lead to decision paralysis due to information overload.

Keywords: choices, decision, information overload, optimization, paralysis

Crystal Ball (6/22/2006)

Better information on risky events may lead to market failure due to adverse selection.

Keywords: adverse selection, genetic screening, information, insurance, parking, risk

Faking It (9/26/2011)

Scarcity value does not depend on technical competence but scarcity itself.

Keywords: branding, counterfeit, external benefit, free ride, information, market signaling, scarcity, shadow branding

Grade A Material (8/1/2002)

In the absence of perfect information, insurers charge premiums according to classes of risks rather than individual risks.

Keywords: auto insurance premium, information, premium discount, risk, statistical discrimination

Health Risk is a Matter of Life and Death (6/22/2006)

Health insurance premiums tend to be high for individual policies because of adverse selection and moral hazard.

Keywords: adverse selection, auto insurance, coverage cap, deductible, defined benefit, defined contribution, health insurance, health savings account, moral hazard, policies, premiums, third-party payment

If It Is Too Good To Be True! (10/8/2017)

The simple-minded addiction to the efficient market hypothesis can lead to super-rational behavior.

Keywords: cartoon, efficient market, rationality

Insurance at Risk (11/10/2000)

Genetic test results on fatal diseases could lead to adverse selection of membership in life and health insurance if unfavorable results are concealed from insurers.

Keywords: adverse selection, asymmetric information, exclusion principle, genetic tests, health insurance, Huntington's disease, life insurance, premium, risk, risk pooling, uncertainty

Joint Liability as Loan Collateral (8/16/2000)

The Grameen Bank in Bangladesh uses joint liability as a screening device to overcome insufficient information on the soundness of individual loan projects and to circumvent the dangers of providing loans without collateral among the poor.

Keywords: asymmetric information, Bangladesh, default, Grameen Bank, joint liability, loan collateral, Mohammad Yunus, peer monitoring, repayment

Lemon Laundering (6/22/2006)

Poorly informed consumers usually end up getting stuck with lemon products which are passed around to avoid capital loss.

Keywords: capital loss, durable goods, information, lemon laws, lemons, money-back guarantee, perishable goods, salvage

May the Best Brand Win! (11/9/2001)

Because well-known brands can signal quality and integrity amid consumer ignorance, brands could stabilize market share and enhance brand-owners' ability to charge premium prices.

Keywords: advertising, brands, dot-coms, market signaling, reputation, Starbucks

Mistaken Identity (2/2/2000)

A mistaken identity can confer temporary competitive advantage to a business because of insufficient information on the part of naïve customers.

Keywords: call forwarding, capacity, florists, identity, market signaling, property, theft, yellow pages

Phone Power (2/26/2005)

Mobile phones that require less fixed investment and maintenance can extend telecommunications to areas that copper wires might have taken decades to reach.

Keywords: appropriate technology, Bangladesh, cellular phones, developing countries, digital divide, fishermen, Grameen Bank, India, market information, mobile phones, phone lady, R&D

Raiders of the Net (2/8/2005)

Controlling the distribution of products and the provision of after-sale service considerably reduce free riding of online shoppers on offline stores for product information.

Keywords: after-sale service, channel conflict, discount store, discounts, distribution channel, DVD, fragrances, free ride, free riding, online vs offline, perfumes, product availability, product information, product pricing, retailers, sales effort, virtual store, warranty

The Blind Leading the Blind (12/8/2000)

An informational cascade occurs when people blindly follow the early movers, but can be quickly reversed in the light of trusted information.

Keywords: adoption, bandwagon, blind, celebrity, culture, down cascade, fads, fashion, first movers, information, informational cascades, rejection, reputation, reversal, signal, up cascade

The Brand Game (9/11/2007)

Chinese companies try to move up the value chain by buying established brands.

Keywords: brand, Dirt Devil, IBM, prestige, profit, Revlon, Singer, value chain

The Evolution of Defectors and Cooperators (8/13/1999)

There is selective advantage in being always honest even when it may be disadvantageous to do so at times.

Keywords: advantage, charitable, cooperators, Darwinism, defectors, detection, evolution, free ride, payoff

The Market Role of Information (7/7/2006)

Information or the lack of it may make or break a market.

Keywords: adverse selection, Asymmetric information, auction, efficiency, free trials, insurance, market signaling, quality, risk, warranty

Too Little vs Too Much Panda-ing (3/12/2015)

You could have too little or too much of a good thing.

Keywords: choice paralysis, information, panda, too much vs too little

Uber as a Two-sided Market (3/15/2015)

By reducing information cost, the internet has ushered in many novel two-sided markets.

Keywords: ads, AirBnB, FedEx, Google, infrastructure, newspaper, price structure, pricing structure, private good, public good, search engine, sharing economy, transaction costs, two-sided market, Uber

Yes, Boss. (1/16/2006)

The prevalence of yes persons is due to the difficulty of objectively assessing the contribution of white-collar work and the bosses’ human desire to hear confirming information.

Keywords: central planning, Chairman Mao, China, Darwin, feedback, job security, market exit, natural selection, tenure, yes men