However, many SMEs are having trouble attaining financing because of asymmetrical information
barriers, relating to their operations.
Chapters discuss private goods without externalities, externalities, public goods, public utilities, and uncertainty and asymmetrical information
between buyer and seller frequently can lead to consumer fraud, abuse and seller-biased recommendations, i.
Victory or defeat in a battle frequently hinged on the ability of a general officer and his staff to either leverage or overcome asymmetrical information
about the hidden characteristics of a situation.
The winners, George Akerlof, Michael Spence, and Joseph Stiglitz, were honored for their groundbreaking work in the field of markets with asymmetrical information
Another chapter covers the significant asymmetrical information
and adverse selection associated with catastrophic and cataclysmic losses.
For centuries asymmetrical information
enabled a highly structured market to buy and sell art with margins that no longer have any economic justification in the 21st century.
Analyses also treat other financial institutions and safety nets, international investment, the role of asymmetrical information
on market volatility, risk management, and corporate governance.
Akerlof is perhaps best known for his article "The Market for Lemons: Quality Uncertainty and the Market Mechanism" published in the Quarterly Journal of Economics in 1970, in which he identified certain severe problems that afflict markets characterized by asymmetrical information