Economics Dictionary of Arguments

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Asymmetry: Asymmetry in science refers to a constraint on the reversibility of operations.
Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments.

Author Concept Summary/Quotes Sources

Kenneth J. Arrow on Asymmetry - Dictionary of Arguments

Mause I 166
Asymmetry/Information Markets/Arrow: Market participants are often confronted not only with a lack of information of the type incomplete information, but also with a lack of information of the type asymmetric information. (1)(2)
Example: A buyer is less informed about a used car than the seller.
Terminology: this is described in the literature with the terms "principal" (seller, superior; holds more information) and "agent" (buyer, employee; holds less information).
Problem: a) a buyer who is not aware of his information deficit will be disadvantaged, b) a buyer who is aware of this deficit may not enter into a contractual relationship. See Information/Arrow.

1. Kenneth J. Arrow, Uncertainty and the welfare economics of medical care. American Economic Review 53, (5) , 1963, p. 941– 973.
2. G. A. Akerlof, The market for ‚Lemons‘: Quality uncertainty and the market mechanism. Quarterly Journal of Economics 84 (3) 1970 p. 488– 500.

Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments
The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.

EconArrow I
Kenneth J. Arrow
Social Choice and Individual Values: Third Edition New Haven 2012

Mause I
Karsten Mause
Christian Müller
Klaus Schubert,
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018

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