Intro to Economics

February 07, 2018

Some solutions to moral hazard

Note: This is post #67 in a weekly video series on basic microeconomics. In the last post in this series we discussed a form of exploitation of information called moral hazard. Continue Reading...

January 30, 2018

What is moral hazard?

Note: This is post #66 in a weekly video series on basic microeconomics. Imagine you take your car in to the shop for routine service and the mechanic says you need a number of repairs. Continue Reading...

January 23, 2018

Asymmetric information in health insurance

Note: This is post #65 in a weekly video series on basic microeconomics. In this video by Marginal Revolution University, Tyler Cowen discusses asymmetric information, adverse selection, and propitious selection in relation to the market for health insurance. Continue Reading...

January 16, 2018

Asymmetric information and used cars

Note: This is post #64 in a weekly video series on basic microeconomics. Adverse selection occurs when an offer conveys negative information about what is being offered. For example, in the market for used cars, sellers have more information about the car’s quality than buyers. Continue Reading...

January 09, 2018

The tragedy of the commons

Note: This is post #63 in a weekly video series on basic microeconomics. Common resources are nonexcludable but rival, says Alex Tabarrok in this video by Marginal Revolution University. For instance, no one can be excluded from fishing for tuna, but they are rival — for every tuna caught, there is one less for everyone else. Continue Reading...

January 02, 2018

Why entrepreneurs want to turn public goods into club goods

Note: This is post #62 in a weekly video series on basic microeconomics. Club goods are goods that are nonrival and excludable, says economist Alex Tabarrok. For instance, HBO is a club good, as you need to pay a monthly fee to access HBO (excludable) but more viewers does not add to costs (nonrival). Continue Reading...