Financial markets are
about information asymmetries.
On reading
about information asymmetry and eBay in the recently released book The Inner Lives of Markets [6], I was struck by the question of information asymmetry in the practice of law.
I am not convinced that we are presently in a «moral panic»
about information asymmetry regarding pricing and quality or that lawyers are exerting sufficient pressure on regulators to change the status quo.
Not exact matches
If the
information asymmetry is endemic, rather than due to an influx of bad sellers, I think it might explain a lot
about the book market as a whole.
For a small investor,
information asymmetry is big challenge when it comes to making a decision
about where to invest his or her money.
One issue is calle
asymmetry of
information — a phenomenon where one party knows much more than another
about an issue of interest to both of them.
Drilling into the
information asymmetry piece, it might be helpful to think
about what a «lemon» is for different types of personal legal services, and for different clients.
I believe the greatest obstacle to such arrangements has been an
asymmetry of
information between the buyer and seller — the disparity between what firms know
about the true cost of legal services they provide and what clients know.