Application of Information Asymmetry in Research
Since the seminal contributions of Akerlof, Spence, and Stiglitz, the pervasive effects of information asymmetry in markets have been documented and studied in numerous contexts. In particular, a substantial portion of research in the field of accounting can be framed in terms of information asymmetry, since accounting involves the transmission of an enterprise's information from those who have it to those who need it for decision-making. Likewise, financial economists apply information asymmetry in studies of differentially informed financial market participants (insiders, stock analysts, investors, etc.).
Read more about this topic: Information Asymmetry
Famous quotes containing the words application of, application, information and/or research:
“Science is intimately integrated with the whole social structure and cultural tradition. They mutually support one other—only in certain types of society can science flourish, and conversely without a continuous and healthy development and application of science such a society cannot function properly.”
—Talcott Parsons (1902–1979)
“By an application of the theory of relativity to the taste of readers, to-day in Germany I am called a German man of science, and in England I am represented as a Swiss Jew. If I come to be regarded as a bête noire the descriptions will be reversed, and I shall become a Swiss Jew for the Germans and a German man of science for the English!”
—Albert Einstein (1879–1955)
“But while ignorance can make you insensitive, familiarity can also numb. Entering the second half-century of an information age, our cumulative knowledge has changed the level of what appalls, what stuns, what shocks.”
—Anna Quindlen (b. 1952)
“If politics is the art of the possible, research is surely the art of the soluble. Both are immensely practical-minded affairs.”
—Peter B. Medawar (1915–1987)