http://www.independent.co.uk/news/world/americas/america-unmasked-the-images-that-reveal-the-ku-klux-klan-is-alive-and-kicking-in-2009-1625732.html
This chapter raises a rather intriguing question,“What do the Ku Klux Klan and Real Estate Agents
have in common?” Once you have read and carefully studied this chapter you should be able to com-
plete the following tasks which,taken together,answer this and related questions.
Place your answers to these questions on Graham's Blog and comment on the answers to 5 questions from 2 of your other classmates. Your comments should add to the discussion and not be simply inane comments like (good job dude).
1. Describe,in broad terms,how the Ku Klux Klan came into existence and how its level of popularity
varied over time.In addition,identify specific factors that caused the Klan’s popularity to rise or fall.
2. Explain Stetson Kennedy’s role in the Klan’s ultimate decline in popularity in the South,focusing on
the role the dissemination of what the Klan believed was secret information played in that process.
3. Explain what is meant by the term “information asymmetries” and give examples of information
asymmetries we encounter in everyday life.
4. Explain whether,and if so,how,information asymmetries create a competitive advantage
for particular individuals.
5. Explain how such innovations as the Internet have affected the prevalence
of information asymmetries.
6. Explain how information asymmetries facilitated the corporate scandals that occurred
in the early 2000s.
7. Provide examples that illustrate how the combination of an information asymmetry and fear
can lead to inefficient outcomes.Explain how the introduction of the element of fear makes
the problem of the information asymmetry even worse.
8. What evidence do the authors offer to support their claim that real estate agents exploit
an information asymmetry to their client’s detriment? As more clients become aware of
the possibility of such behavior by agents,how might it affect the relationship between the two?
9. Explain how the choice of terms a real estate agent uses to describe a particular property conveys
additional information about the property,and hence the price a potential buyer might be able to
successfully offer the seller.
10. This chapter examines how the economic incentives of a real estate agent may differ from those
of his or her client.What other subject matter experts are often hired by individuals and business-
es? Might they have incentives that differ from those of the clients that hire them?
11. Explain how the information a person has can affect his/her propensity to discriminate.
As part of your explanation,distinguish between taste-based discrimination and
information-based discrimination.
12. According to the voting data from the Weakest Link,which two groups of people are most likely
to be discriminated against in that setting.What type of discrimination is being practiced in each
case? Explain.
13. What do the data say about the characteristics of men and women who participate in
Internet dating sites relative to the characteristics of the broader population?
14. Assuming many of the people who use Internet dating sites are not being truthful when they
describe themselves,what could motivate them to do so,knowing that if they ever actually
met a date face-to-face,the truth would likely come out?
1. The KKK was founded after the Civil War by six former Confederate soldiers in Pulaski, Tennessee. The six young men thought of themselves as like-minded friends. In the beginning, their activities were said
ReplyDeleteto be harmless midnight pranks, but they soon spread and turned into a terrorist organization. Their popularity rose when more people felt the need to have better social status within white communities and decline when the civil rights movement really picked up.
2. Stetson Kennedy was a 30 year old man in Atlanta who hated the KKK and decided to go undercover in the KKK to further their downfall. He rose up the ranks and discovered many things, he fed information to the public using his radio station and code wording things during the show.
3. Information asymmetries are, in basic terms, when one person has more knowledge than another person on a certain subject. A very common example of one would be a teacher knowing more than a student.
4. Information asymmetries could creative a competitive advantage because if one person knows more about something then they might get a raise, be able to black mail someone, or anything that could help get them further ahead in their pursuit/detriment their competition.
5. The internet has decreased information asymmetries because anyone with access to it can learn more about a certain thing at any given moment. People can also spread/share secret or private information via the internet.
6. The crimes committed by Enron in the early 2000s included hidden partnerships, disguised debt, and the manipulation of energy markets. Enron tried to get ahead of other companies by using information asymmetry propelled by the use of the internet.
7. Fear and information asymmetry can lead to inefficient outcomes because people may fear that someone knows more than them about something/more than they should about something. The element of fear introduces a whole new level or being cautious, paranoid, etc. to the situation and may cause people to treat the situation completely differently. For example, if a baseball pitcher knew that a baseball player was on steroids they might be afraid to pitch against them.
7) I agree with you on fear creating paranoid and cautious when you don't know something and some one else does. I have experienced that sometimes in class. Also when people do not know a lot of information about something they tend not to care as much about the situation than if they had a lot of information
Delete3) That example is a good one. I also think that another example of information asymmetries relating to students is when like in Math class, the class is introduced to a new topic, there is a little bite of information asymmetries there because some students may understand more and have more information about that topic than you causing you to know less about the topic than your mate.
4)I agree also it can create a competitive advantage because that one person who has or know more than you will try in all means to always use that against you in a situation causing you to lose every time, also they might try and find more like your said and it will cause a competition because they will say :" I know more than you" and you will say "No you don't and that will start an argument.
8) Also they will say " this is one of the best houses in this neighborhood" and " lots of people are wanting this place but i saved it for you" They most of the time say lies just to get you to buy the house and if its not good you can't blame them much because you should have kind off known oo this house is not really good like they are say. But i totally agree with you
10. Another example i can think of to go with your is also any dealer will try and use big words to try and get your o buy there products like the advertising group they will use big words like Outrageously the Best, and stuff like that just to get you to buy their product. 10% or more of the times the product is good but mostly they don't work out as they say it does after you purchase it.
1.)I agree with your KKK history. I am still in awe how it escalated form midnight pranks to hate crimes.
Delete3.) Information asymmetries are also like when a group of people knows more information about a certain topic then the other group. Like if a group of investors want to buy out a company because they have more info on a future perspective
4.) Information asymmetries also can create competition when like their are car dealers and they compete with each other to get the most sales. Also in gas prices, especially when gas stations are commonly located across the street form each other.
5.) I agree, that the internet has really improved the information asymmetries because you can Google anything nowadays and get some factual and or opinionated information.
10. Car Salesman seem to be the worst nowadays, they act like they are superior and persuade the customer to buy a car that maybe not be as good as they make it seem.
1) I like that you added that people join mainly because of the social status they were given
Delete2) kennedy was also the son of a famous kkk member and most of his tactics didnt work until feeding code words to the superman tv show.
3) I think you could have done a better example, one with more impact too because a teacher student realtionship is generic and beneficial to both parties.
5) i like your view on the assymetries and internet but how do you think someone without the internet is now affected with information assymetries and what if wrong information is given through the internet.
7) i dont think that the baseball player is an assymetry. If the pitcher knows the batter is on steroids who is the one with out information. The batter knows he is on steroids. Also if there is a way for the pitcher to know the batter is on steroids the batter wouldnt be playing anymore anyways.
8. Real estate agents use clever wording to fool their clients into buying houses that may not be as good as they think. Things like saying "it's a really good neighborhood" or "the people who live here are great!" are used to distract from the fact that the house isn't that nice.
ReplyDelete9. The real estate agents use special terms to make the place sound better than it actually is and they correlate to lower sales prices. They also use words to correlate to higher sales prices to really show that the house is nice.
10. Other experts that have economic incentives that use special terms/and stuff like that could be car salesmen, retailers and anything similar to that.
11. If someone knows a lot about a certain subject or many subjects they might discriminate against people more because they know what too look for/what not too look for. Information based discrimination would be not giving someone a job because you know they've been to jail 2 times, taste based discrimination would be not giving someone a job because you don't like their haircut.
12. The voting data from the Weakest Link shows that Hispanics and the elderly are most likely to be discriminated against in that setting. Hispanics are being information based discriminated because they seem to know the most on the show and the elderly are being taste based discriminated because the other contestants just don't want them around.
13. The data says that many men and women lie about their characteristics to help attract others. They were generally more attractive than the 'average' person.
14. People could be motivated to lie about their characteristics to find a date easier, find someone who is rich, and generally have an easier time finding a partner. Even though people know the truth would come out if they met face to face they overlook it and generally think the other person won't mind.
1.) the kkk originally started because of the movie that came out in the 1920s.
Delete3.) Information asymmetries are also like when a group of people know more information about a certain topic then the other group and use the information to take advantage of that group.
4.) Information asymmetries also can create competition when like their are car dealers and they compete with each other to get the most sales.
5.) I disagree, i think they have raised information asymmetries. I think this because their is lots of competition throughout the internet because thats how people do their shopping.
9.) They might use words like great neighborhood, granite, or spacious to add the cost of the house or hd away the flaws of the house.
1. The Ku Klux Klan came into existence in the aftermath of the Civil War when six Confederate soldiers came together to form a “racist” group of people. The Klan started off small but eventually evolved into a multistate terrorist group. After a decade the Klan was basically diminished because of interventions by legal and military personnel. But, in 1915, G.W. Griffith’s film The Rebirth of a Nation helped spark the Klan to its rebirth. By the 1920s the Klan had over 8 million members and was now all over the nation, not just in the south. World War II caused the Klan to, once again, become low. Within a few years the Klan had revived itself again and it claimed Atlanta as its headquarters.
ReplyDelete2. Kennedy joined the Klan in frustration and hopes of destroying it. Eventually he got his chance when he thought of the idea to spread the Klan’s passwords to kids all across the nation by giving the Klan’s information to the very popular Adventures of Superman radio show. Eventually the kids were playing games where they were trying to catch the Klan (a version of the cops and robbers game for kids). After a few weeks most of the Klan members had quit showing up to the Klan’s weekly meetings because they feared their families would discover their secrets.
3. Information asymmetries happen when one side has more or better information than the other side. An example of information asymmetries in a daily life could be when we look on the internet for information about a specific topic. We might look at one website that has better or more information than another website.
4. Information asymmetries can definitely create an advantage for some individuals over another. An example of this is when you are selling something, say an old TV. The TV may look nice but you may know that it doesn’t work. The person who wants to buy the TV doesn’t know that it doesn’t work so they buy it. When they take the TV home and realize that it doesn’t work, then they realize that they have been cheated out of their money.
5. The internet has affected the prevalence of information asymmetries because it is open to anyone to put anything they want to put on the internet. Most people put their opinions about something on the internet so it is becoming harder and harder to find a website with pure facts.
6. Multiple big name businesses and people (Martha Stewart) were conducting many "hidden" deals which, eventually, became known. This including trading information about shares, hidden memberships, disguised debt, and manipulation. These were all information asymmetries but they just weren’t being discussed.
7. One thing that I could think of would be when you have a contractor come to look at something that is wrong with your house. Lets say a contractor come to look at a small crack in your wall that is really harmless. The contractor will use his knowledge of the size of the crack and realize that it is harmless, but he will tell you that it needs to be fixed just so he can get your money. Another example could be a doctor telling you that you need surgery even though it may not be necessary.
8. The real estate agent will set the price of the house and try to convince the sellers to give up the house when the real estate agent feels he/she will be benefited the most. For instance the agent will set the price where she will get the most money out of it and then when she feels that the sellers have gotten a bid that will also benefit her most. She will then try to convince the sellers that this will probably be their highest offer. The sellers could also go on the internet and see what other houses around their neighborhood have gone for and they realize that the price is off. This could negatively affect the relationship between the real estate agent and the sellers.
2. The Klan members did not just quit because they thought their secret would be exposed, but they did not want the public humiliation of being identified as a Klan member because it was now given a bad rep because of Superman. Also, they did not want their children to think poorly of them.
Delete3. I agree with your definition but your example does not make sense to me. Information asymmetries occur when one side knows more information than the other side, like real estate agents or car dealers. The real estate agents and car dealers know more information about the car or house than the customers and can choose which information to hide and what to share.
4. Your example for information asymmetries is much better in this question because it shows that the person selling the broken tv can choose to share the good qualities about the tv (looks, size, quality, price) and choose to hide the negative information (broken, old, used, useless).
5. the internet also has some positive effects on information asymmetries from the customers point of view because you can find out the hidden information that is being hidden from you, although it can be hard to find truthful information.
7. I agree with your answer, because when experts are telling you that there is a risk if you do not take action or you need to do something, chances are that you'll do it. you depend on them to tell the truth and help you where you are unknowledgable.
9. The real estate agent will use words like “Great Neighborhood” or “Spacious” to cover up the flaws of the house. The agent may also use words like “Up to date kitchen” or “Hardwood floors” to help make the house look more appealing than it really is.
ReplyDelete10. One example I could think of is a couple hiring an architect to help them make the design for a new house they want to build. The architect may direct the couple toward top of the line products so he will get paid more.
11. Taste-based discrimination occurs when a person will not work with a certain type of people. Information-based discrimination occurs when a person will not work with another person because they feel that the second person is not capable.
12. Elderly - taste-based - Regardless of their skill for the game elderly players were voted off on the fact that they don't want them around and people think they no longer have the ability that they used to have
Hispanics - information-based - Regardless of their skill for the game, Hispanic players were voted of on the opinion they are poor players.
13. People in online dating sites usually do one of two things. One, be truthful in hopes of finding someone who likes you for you, or, two, lie to seem more attractive. To be completely honest, I believe this can be true of the broader population as well.
14. When people meet face to face (Say the guy is the one lying and the girl is being truthful) the truth WILL come out. If the girl doesn’t like the fact that she has been lied to, then she will tell the guy that she never wants to see him again. This will motivate him to not lie anymore. I think guy are more likely to accept a liar than a woman so the lying women may not have as big of an incentive to quit lying.
1.It was originally formed by 5 or 6 confederate soldiers. They started out doing a bunch of pranks to others and eventually that progressed to lynching African Americans. It’s popularity only lasted around 10 years, and that had started at around 1915. That was when a film was made that represented the Klan in a positive way. By the 1920’s, 8 million people were added to this group. When World War 2 happened, however, the KKK was rarely heard of for reasons of internal conflict. Soon after some members of the Klan were leaking information to the general public about things that included their principles and plans. This caused it all to come crashing down once everyone knew the motives and actions that the KKK were going to do all the time.
ReplyDelete2.Kennedy was reportedly related to a KK member. With that connection he was able to go to some of their meetings and learned about the organization. Using this advantage he spread it to public radio stations and from there it was hard to hide the actions of the KKK.
3.Information asymmetry is when one part of an agreement knows more about something than the other party and takes advantage of that knowledge. For example, a person who wants to purchase something unusual, like a funeral casket, could be told by one seller that it is for a price higher than its worth. The reason they might take advantage of the buyer could be because the person is probably inexperienced in the field of caskets and funerals and also because they are under emotional distress.
4.As mentioned before, information asymmetries usually are an advantage to the seller of an item, since they ultimately know better about an item in the market than a consumer.
5.With the internet, it has become easier to research the most affordable or cheapest brand for an item. This makes it harder for individual sellers to overprice items for sale.
6.Real estate agents were persuading home owners to sell their houses for less than they were worth. They would then tell anyone who wanted to buy that the house was for a higher price, making them lower it to a price still above what the seller had settled for. This results in the buyer spending more than needed and the agents to get more money than allowed. This shows asymmetries since it’s basically like double dealing, both sides are getting different information from one source.
3. When I read that example in the book, I knew things like that would happen, but I was really taken aback by it. I don't understand how a person could consciously manipulate someone like that when they are in such a vulnerable state.
Delete4. I, obviously, agree with that statement. I always knew that if someone is selling you something than you would know less information than they do, but it was cool to learn that there is an actual phrase for the word.
7. I completely agree with you! When fear overcomes a person, they're too busy being scared to worry about what decisions they are actually making. This is not a good thing, but good decisions generally tend to be an afterthought when fear is in the picture.
8. What you said totally makes sense. I also believe that something that played a big part in the weakening of this relationship would the internet that allowed for a much quicker way of gathering quotes and information on the house you are selling/buying and other houses similar to it.
10. True; the agents are just looking to make money for themselves, in general. Sometimes it can be hard for someone buying a car to find an honest and trustworthy salesman who is really looking out for their costumer, and not just their wallet.
CONTINUED-
ReplyDelete7.Fear generally makes people act more and think less. If someone were to tell someone else that a fire was in a building in which they resided, most would pick the nearest exit to run to and not the safest. So for example, when someone is put in a fearful situation, they usually want the quickest and seemingly easiest way to get out of it. This is good for those who use information asymmetry to get what they want since all they need to do is use reasonable doubt or potential regret to sell an idea or item to them.
8.The evidence used to support the idea of information asymmetry is the personal story that a friend of the author’s had told them. He was in the same situation as many people who house hunt and get a deal that isn’t fair price-wise. As that behavior became more well known, the relationships between real estate agents and clients probably weakened or worsened since it would be harder for the buyer to buy a home from an agent.
9.In the book, more positive connotated words were specific and less mainstream. Words like ‘gourmet’ and ‘granite’ symbolized the exact elaborateness or fanciness of a house. However, words like ‘spacious’ and ‘fantastic’ are more vague and don’t really depict how a house may actually be once it is bought.
10.When a person buys a car there is usually an agent or advisor who shows them types of cars. Usually what agents re trying to sell are the most popular and expensive cars of the company so that they could get more money.
11.Usually people discriminate according to what they personally believe. Taste-based discrimination is when a biased view is given about something. For example, a vegan might find the idea of stem-cell meat absolutely atrocious no matter how many benefits you list for them simply because they don’t eat meat. Information-based discrimination, however, is more believable. This is usually backed by research with pro’s and con’s concluded in many aspects of the subject being discussed.
12.The answer is African American’s and women. This is because the most recent civil rights movements in this country were for those two groups of people so they are more likely to be discriminated against. This is simply for the fact that the more someone is put in the spotlight, the higher chance of some people discriminating against that type of a person.
13.For both genders, it is reported that a lot of facts are false on a person’s online dating profile. Things like hair color, marital status, and personal opinions are falsified in order to make them sound more appealing.
14.A motivation for someone to be honest about themselves on dating sites could be success stories of couples who were on a dating site and honest about themselves to their virtual love interests. Using that, it would be easier for new users to depict their future with someone as a result of being truthful about their personal dating profile.
1.) The Ku klux Klan had an up and down history. It was founded by 6 confederate soldiers where they would do simple pranks like riding horses through countryside while draped in white pillow cases and sheets. Over the years the small pranks began to progress into lynching African americans, shooting, burning, and pistol whipping. It wasn't until 1915 when the Ku Klux Klan started to grow. This year was when the film The clansmen came out. This film had many significant quotes that caught peoples intrest in joining the Klan."At last there had sprung into existence a great Ku Klux Klan, a veritable empire of the south to protect the southern country". By the 1920s their where claimed to be 8 million members including president Warren G. Harding.It wasn't until world warII when the Ku Klux Klan started to become non-important. People started to get so into the war they they totally didn't even care about the Klan. Ever since the war the Ku Klux Klan hasn't been as strong as it was in the 1920s.
ReplyDelete2.) When Kennedy couldn't join the war he felt obligated to do something right. So he decided to go undercover as a Klan member. Kennedy began to attend weekly meetings where he would rush home to take notes on what they were doing. After just a few weeks Kennedy decided to go public with these notes. He decided to send out all of the Klans passwords out to kids all across the country. He also got onto a radio station where he wrote some episodes about the Klan.
3.) A information asymmetries is basically when one group of something has more knowledge then another group on a certain topic. the group with a lot of knowledge usually takes advantage of the group that know little. An example of this is maybe when you are looking to buy a car and a car salesmen tells you ou should pick the more expensive car.
4.)This could be a competition because car sales men are always competing for the highest sales to make more money. the advantage could me honda is selling cheaper cars then ford.
5.) The internet has been so advance over the years it is very easy to se you is having the better deals and selling the cheaper prices. This makes it harde for companies to sell products. this is a very competitive asymmetries
6.) in the early 2000s lots of big name businesses and people were having many hidden deals which, eventually, became public. This including trading information about shares, hidden memberships, disguised debt, and manipulation. "Sam Waksal dumped his ImClone stock when he got early word of damaging report from the food and drug administration"
3. Information asymmetries could also be when one person has better information than another person.
Delete4. That could be an example but it is not necessarily an example that is an information asymmetry. An example in that instance could be a car dealer sells a car to someone knowing that it has damage to it (stains on seats, scratches, ect...)
5. Like before im note sure this is a good example of an information asymmetry. An example could be you know more about who has the better deals than a person without the internet.
7. I totally agree, that is a great example of someone using their knowledge to exploit another persons smaller amount of knowledge to take advantage of the person with a smaller amount of knowledge.
8. That is a good example of how a buyer and a real estate agent can have a bad relationship. Also i dont think the real estate agent can tel one person what another person bid at.
1. Very nice, in depth description of how the KKK started, I like how you said how it was founded and how it spread.
Delete3. I agree with Jaydon on this, they might not have more information, just better information.
4. Not much of an information asymmetry, but more of a competition and general. Most car salesmen know the prices of cars/what other dealers are selling them at, but I see what you are trying to say.
5. I also think isn't isnt much of an information asymmetry, because a lot of companies sell their products online as well which makes it easier for them to sell the products.
9. I agree with what you're saying here and I especially like how you said it may raise the price of the house, when in reality the house hasn't changed/shouldn't be worth more than it already is.
3. They may know just as much information as you do, but their information is usually much more valuable. For example, they know what to look for in a good car more so than most car buyers. they also know specific information about cars and will show more pros about expensive cars than cons if they think they can convince you to buy it.
Delete4. This can be information asymmetry if they dealer knows about the damage of the car and downsizes it although he knows it is heavily damaged. therefore he abuses his knowledge and expertise on the matter by lying about the extent of the damage.
5. This could be considered information asymmetry because the internet helps eliminate lies about the "best price" and such. This information then goes into the hands of the customers with the help of the internet.
7. This is a good example of fear because people do not want to risk having a bad experience or something and they are so afraid that they are willing to pay good money to get rid of the fear.
14. this also might just discourage him from telling the truth because he might get the idea that he was broken up with because of his height and that he stands no chance on the dating site if he states his true height. some people will continue to lie in hopes of getting more dates, boosting the odds that one of them will not care about his faulty information on the website.
Very nice #1, you included a lot of information and covered pretty much all of the things you could of covered.
Delete#2. Information asymmetries are also abused by people who we view as "Experts", which is kind of what a car salesmen is. In your description you used the car salesmen as an example and that was a very good example.
#8. Real Estate agents might also trick you into selling your house early because the $10,000 you might get wont exactly affect their share of your home and they could better spend that time selling other homes.
#11. Taste based discrimination is just when you just don't like someone or a group of people, information-based discrimination is when you might have faulty information that affects how you view other people. These are usually things like stereotypes.
#14, There might be a reason that he is lying, for instance people have dumped him before for his height. He might only see that people hate his height and dont think about ruining a relationship before you even truly start it.
7.) When someone experiences fear they want to get the easiest way out of being scared. An example of this is maybe when you need a oil change for your car, and the mechanic finds "everything wrong" with your car. You then might feel panic and fear because you dont want your car to be on the side of the road five minutes after you leave. so you spend $1,000 in changes on your car, but 5 days later you need your tires changed and they tell you that you need the same exact change. they just want to get as much as they can out of you by causing fear.
ReplyDelete8.) Real estate agents might use different types of methods on getting you to buy the largest price possible. For example a agent might say that its a great neighborhood and schooldistrict. so she/he might raise the price of the house. the agent might also say that someone is already asking 220,000 so you should ask 230,000 to get the house for shore. where really the lowest price asked was 200,000. once a buyer finds aout about the scams the relationship will probably weaken dramatically.
9.) The real estate agent might use words like "well maintained, fantastic charming, and spacious".They use these words to cover up the flaws/make the house more appealing to they buyer. this also may raise the prices of the house.
10.) Insurance agency is another example. they try to make you pay the largest amount of money for the largest deal. They do this so they can make the largest amount of money for themselves and the company.
11.Taste-based discrimination occurs when a person will not work with a certain type of person. this would be racial, their height, and pretty much anythingInformation-based discrimination occurs when a person will not work with another person because they feel the second person is not fit for the job or not good enough for the person.
12.) African americans and hispanics. African american-Taste based- because some people wont work with african americans because of their race. while Hispanics-information based- are not worked with because people think that they are not smart/ nor qualified for positions
13.) People on dating site i believe most often try to make themselves most appealing to others. weather its height, weight, hair color, eye color, or whatever people do this to get more relationships. I also believe that this can be true for the broader population as well.
14.) whenever a couple do come face to face and one was lying about they way he/she wad looking the truth will come out. Lets say a guy said he was 6,2 but he was really only 5,5 , and the girl breaks up with him because he lied. this might motivate him not to lie on dating sites again. He now know that if he lies then he could not have a relationship for a long long time.
1. The KKK started out small – just six men – and soon grew in numbers and damage. It was dying down until the movie, A Birth Of A Nation, was released in 1915. By 1920, it had 8 million members. In the 1940s, the KKK was not as big and public because of the war. In the few years following WWII, the KKK grew once again until Stetson came along. They lost most of their power and followers because of the Stetson Superman incident.
ReplyDelete2. Stetson Kennedy joined the Ku Klux Klan to spy on them and gather information about them. He got their secrets and then told the producers of Superman all that they needed to know. The producers made episodes of Superman that made the KKK look like a comedy act because The members of the KKK were embarrassed and turned on each other, which led to the decline of them.
3. Information Asymmetries is when one side has more information than the other side. An example in everyday life would be if you are buying insurance for the first time ever, and know nothing about it. The insurance people can take advantage of your lack of knowledge and make you buy more than you need.
4. Information Asymmetries gives people an advantage because of fear and expertise. They know things that their clients do not, and can abuse this knowledge to take advantage of the clients and customers. They have the advantage that the customer will feel obligated to listen to them when it comes to important matters like medical issues.
5. It is harder nowadays to have an advantage from information asymmetries because the Internet can provide the missing information to the clients and puts them more or less on the same level as the people they are buying from.
6. To keep information asymmetry going, people hid information and lied to keep the clients knowing less than the sellers. Everybody was lying about information, which caused the scandals of 2000.
1) the kkk also didn't cause much harm when it was the original 6. They usually cause harmless pranks.
Delete2) You forgot to include how they were made a comedy act. The secret passwords were all leaked and were all really silly. Plus there were many other attempts made by stetson kennedy to stop the kkk
3) I agree with your example and think it is appropriate with all the insurance commercials and that this still happens now even with internet5.
5)What about people without internet and what happens to them know as they are the few left behind by those with it.
6)who are the people that hid the information. How was the information hidden. HOw was there a leak because multiple had to have know.
1. After the civil war, the KKK was created by six former confederate soldiers whom were budding lawyers and considered themselves as likeminded friends. It gained popularity after recent wars, offering something to fight for. It especially became popular among white conservative Christians with had racist views. However, the KKK died down once they were exposed on a children's radio show.
ReplyDelete2. Stetson Kennedy played a huge role in the fall of the KKK. He joined the KKK to retrieve secret information, to bring down the organization. Once he gathered all of the information and secret codes, he told the writers of the superman radio show to include it in the broadcasts. After the secrets of the KKK became public, many Klan members left from embarrassment.
3. Information asymmetries occur when one person has more information than another. We encounter these when looking for information on the Internet. We may go to one website rather than another simply because we want the best information.
4. Information asymmetries can cause competitive advantage when one source of information is better than another and then causes more people to refer to the better source and not the other one. This can drive informative businesses out of business.
5. The Internet has increased information asymmetries because it offers people to chose the best information. When more people chose the better information and make it more popular, then the other source is left out of the picture.
6. In the real estate market, homes were being sold for less than they were worth. Agents withheld information from the sellers so that they can make a better commission.
7. Again in the real estate market agents were keeping important information and using fear to get home owners to sell their house and buy another one. They tried to scare people into thinking that they needed to change their offer, and that they needed to act fast or their dreams would be gone. This makes a bad condition for the home owners and buyers.
8. Real estate agents try to address false prices and false information about a house. They may tell the seller the benefits of selling their house for less and make it seem easier to sell at that price. They also use distracting words like "fantastic" and an "!" to give a positive view of the house when there are no real good things about it.
9. A real estate agent will use specific terms about the house if it is worth buying, but will rather use more broad terms to draw in buyers on a house that has no character. These terms also determines the price that the house will sell for.
10. Policemen are hired to ticket speeding or illegally parked cars. If they work on a commission, they are more likely to respond to the incentive of giving more tickets, rather than giving tickets that people deserve.
11. Information that a person has can cause them to discriminate based on their personal interests. Taste based discrimination refers to the interests of a person. Information discrimination occurs when someone knows something about someone else that deters their interest.
12. Old people are voted off due to taste based discrimination because the younger kids just don't want them around. Hispanics are voted off due to information discrimination because people think that they are poor players and will cause them to loose the game.
13. People on dating sites rather lie about themselves to draw attention. Even though hey are not what they say they are, they stand a better chance than if they did not tell the truth because people are looking for the best person to date.
14. People are motivated to lie about themselves on these dating sites because they are insecure about themselves. If they lie and attract attention to get dates, then they feel that it is better than nothing. It is also hopeful that they will find another lier and put aside their differences to be together.
3. Information asymmetries dont only occur on the internet. They can occur anywhere at anytime if the situation is right.
Delete6. The big thing with #6 was that many companies and people were committing "hidden deals" that were eventually exposed.
8. I don't think Real Estate agents use false prices or false information about a house more than they do use words that make the house look more appealing than it really is.
13. I agree that people lie to draw attention but i dont think they stand a better chance when it come to the actual date.
14. I dont think a couple will both be liars on online dating sites. I think the guy is more likely to lie than a woman because usually guys go for women, not the other way around. Also i think a woman is more likely to tell the guy that she doesn't want to see him again.
1. The ku klux klan came in to existence because after the civil war there were still confederates that hated African Americans, they rose in popularity because it was a fraternity that gave uneducated men a place. The war caused their popularity to fall and its end caused their popularity to rise again.
ReplyDelete2. Kennedy went in undercover on his own accord because he was tired of the klan. What he did was he gave the information of their secret codes/passwords to the superman producers. This way the secretiveness was undermined by the fact every kid in America new the klans passwords and codes.
3. Information asymmetries are when one party has more information and knows more than another. An example of one in everyday life is teachers know more than students and they know what’s going to be on the tests while the kids are left guessing.
4. Information asymmetries can create competitive advantages for particular individuals is if two boys want the same toy and there is only going to be one in the store, and one boy knows when the store opens, he will get there on time and probably before the other boy.
5. The internet is just a vast ocean of information. You can look anything up and find what you’re looking for instantly. That way its easier to know and attain information.
6. In the 2000 scandals there was hidden partnerships, hidden debt, and manipulation of the energy market. There were also inside stock information trades.
7. Information asymmetry can lead to inefficient outcomes because it can strain relationships by someone not sharing all the information. It can make it even worse because as someone learns more they can withhold more and not share it making them more dangerous and less trust worthy and they could become a mastermind scammer or something and get an high unearned amount of money.
8. They rely on the fact that you don’t have the information they do or know what they know therefore they can raise prices because of you knowledge you don’t have. The relationship would deteriorate between real estate agents and the people they sell to causing a probable drop in prices and maybe bankruptcy.
9. The real estate agent will use empty terms such as charming and “!” that would end up getting a lower price. The terms might indicate better deals around in the area or the house has lots of work to be done on it. While other terms that are straight to the point make it so there are higher bidders.
10. Car dealers, casket makers, and insurance companies are an example of subject matter experts. I would say yes they have different incentives than their clients.
11. It can make them choose to act, do, or say something in the same situation with different people. Taste based discrimination is based on prefers not to have interaction with the other while information based discrimination is based on what some one believes to know about a another.
12. On the weakest link the discriminated groups are Hispanics and elderly people. The elderly are taste based because the shows average age is 35 and the people just tend not to want the elderly around because they don’t fit or other similar reasons. Hispanics are information based because people think that Hispanics are not good players.
13. Lots of people on the internet dating sites lie about themselves and give themselves better reviews so that they are more wanted. The percentages didn’t matchup with the broader population either.
14. They do this to fell more wanted and because they have more information than the other person. They also do this to meet more people and probably get more contacts and broaden their pool of people that will request them. The incentives are there and the starting social incentive outweighs the later in most cases.
1.) they also grew their population when the movie about the kkk came out and when the president joined
Delete2.) Kennedy also joined the kkk because he felt he was obligated to do something good since he could not join the war.
3.) Information asymmetries are more like when a group of individuals know more than another group and take advantage of the group that knows little about the subject
4.) i agree with your statement but they can also create competition through business also like car dealer ships.
13.) they also then will end up with know relation ships because they lied to the person about how they look etc.
3. I agree that teachers know more that kids. However, the kids are taught the information from the teacher and I do not believe that the tests are rigged resulting in kids having to guess. Also the teacher is not using the information against the kids.
Delete4. I don't understand your scenario. How is the boy using information that is unknown by the other boy against him? Wouldn't the other boy also know when the store opens and get there first?
5. I agree that the Internet is an easy way to attain information, but how has it affected the prevalence of information asymmetries?
7. I agree with your statement, but where does fear come in?
14. I agree that people are trying to do the best they can to become more social and do better, but what happens when they meet face-to-face?
3. Information asymmetries could also be when one person has better information than another person.
Delete4. That could be an example but it is not necessarily an example that is an information asymmetry. An example in that instance could be a car dealer sells a car to someone knowing that it has damage to it (stains on seats, scratches, ect...)
5. Like before im note sure this is a good example of an information asymmetry. An example could be you know more about who has the better deals than a person without the internet.
7. I totally agree, that is a great example of someone using their knowledge to exploit another persons smaller amount of knowledge to take advantage of the person with a smaller amount of knowledge.
8. That is a good example of how a buyer and a real estate agent can have a bad relationship. Also i dont think the real estate agent can tel one person what another person bid at.
1. The Ku Klux Klan was founded after the Civil War by six former Confederate soldiers in Pulaski, Tennessee. At the beginning what they did was not harmful but when the five former Confederate generals supported the plantation owners for whom Reconstruction posed an economic and political nightmare, so they go around frighten and killing emancipated slaves. Within barely a decade, the Klan had been extinguished, largely by legal and military interventions out of Washington, D.C.
ReplyDelete2. First, Kennedy joined the Ku Klux Klan in order figure out the key fact about the Klan. He pretended to play hard to get so they would not figure out his plan and later agreed to join. He attended weekly meetings, hurrying home afterward to write notes about what he learned. He learned the identities of the Klan’s local and regional leaders and deciphered the Klan’s hierarchy, rituals, and language. He was later invited to join the Klavaliers, the Klan’s secret police and “flog squad”. He got more information about the Klan’s and later told all their secrets to the Superman producers and they were able to create four weeks of program on the radio based on the information given by Kennedy.
3. The term “information asymmetries” basically means that someone known something that other people don’t. An example of information asymmetry can be teachers because they have degrees and experiences in their subjects but they students have not reached that far in education.
4. Another example would be someone who is advertizing a product, may only mention the positive outcome of the product. They person who is selling only known both side of the product in this case.
5. The Internet can give the information to the consumer by doing that it decreased the gap between the experts and the public.
6. The crimes committed by Enron included hidden partnerships, disguised debt, and the manipulation of energy market by sins of information. Enron tried to keep the information asymmetry as asymmetrical as possible.
7. As states in the book that if your doctors tell you to come back very soon, you would be scared and go back because you think of negative outcomes and be scared and pay the money to go back to the hospital. Fear and information asymmetry can be very danger tool because the expert is controlling his costumer if they find the fear in them.
8. To benefit a real-estate agent would persuade the homeowner to sell for less than he would like while at the same time letting potential buyers know that a house can be bought for less than its listing price. The clients would not trust their agents and the will question her and they wouldn't be working together very well as before.
9. The real estate agent will use terms like “Fantastic” to lead the buyer in the direction she want them. The physical descriptions such as granite, corian, and maple are used to higher sales price.
ReplyDelete10. One example is sports agents, I would picture them using special terms to make their player seem much better than they are to the mangers or to increase the player wage because of their performance.
11. If the manger of sport team known what they are looking in their players really will then it will criticize the players because of the list of the information he has.
12. According to the voting data from the Weakest Link Black people and women were discriminated because of the social campaigns of the past half-century were the civil rights movement and the feminist movement. Other contestants viewed the Hispanics as poor players, even though they were not. This date was based on the second type, know as information-based.
13. The date say that men lied about their earning and women said that they weighted about twenty pounds less than the national average. Both lied about their height making themselves taller.
14. I believe that they are motivated mostly by the media. A lot people today can’t go without watch a movie every week and in the movies you always see well dressed person or good lucking person and your influence by that to lie about yourself on the dating sites.
1.The KKK came intro existence as a group of friends wanting their own little club after in mid-1800's with similar beliefs. The klan actually died down a couple years after it was started, until it was reintroduced in the 1920s. After WWII, it had exploded to a large organization. The third wave had come about from the factor of the civil rights movement and some people's protests against civil rights.
ReplyDelete2.Stetson Kennedy was the reporter of all of the Klan's secret information to the rest of the world. The popularity came partly from the klan's secrecy as a large organization that people wanted to be a part of. Kennedy attacked this by getting a mole in the organization to pass on all of the secrets and he then broadcasted it on the radios for everyone to know. This broke the klan's image of a secret society in people's eyes, and the role of dissemination brought the decline of the klan's popularity.
3.Information asymmetries is when between two parties, one party has an unequal amount of information on something to the other. An example of this would be a regular non-tech person walking into an Apple store and asking a rep. about getting a new computer, and the salesperson sells the person a computer based on its specs, which the consumer doesn't actually understand.
4.Information asymmetries do create an advantage for certain individuals, because they can use the other's lack of knowledge to their advantage in misinforming them on a topic and being able to make them think a certain idea that would be predicted by that person.
5.The Internet has created more transparency to markets the information of the world. Instead of relying on an 'expert' for the cheapest price on the produce, a person can easily search the Internet for where the cheapest price really is. This creates smaller and smaller information asymmetries as people can now easily gain the knowledge.
6.Agents withheld information from the sellers so that they can make a better commission on houses by selling them more cheap. Large firms in different markets would also lie to their clients and do things such as overcharge on electricity on unknowing consumers.
7.With selling your house, you have the information asymmetry between the owner and the agent. The agent might lie to the owner on the house's price for their advantage of gaining the most money they can out of the commission. The element of fear makes it worse because the owner is afraid when trying to sell their home- if they make it too low and isn't worth it, too high and it will not be sold- and rely on their agent to price it accordingly and to find a person to buy it.
8. The authors offer the evidence between how agents sell houses based on a commission or it's the agent's house. The evidence found that agent's put more effort and sold their own houses at average higher than clients' houses. Another was the use of advertisement for these houses- agents would use vague terms to try to fool people. If more clients become aware of this and their agent lying about the price of the house, the relationship will suffer and the agent will likely be fired.
ReplyDelete9. If an agent uses vague, positive terms for the house, it conveys something great about the house-but nothing to actually describe real characteristics of the property-, giving it a low price.
10. Tax accountants are often hired by individuals and businesses to help with taxes. Their incentives can possibly differ than their client's as they don't have the incentive of receiving that money back from taxes as it is not their own, so they might be less inclined to do a thorough job on a person's tax form.
11. Information can make people choose how to take each type of situation based on other people and the degree of discrimination towards a particular person. Taste based discrimination is based on a person preferring not to interact with the other while information based discrimination is based on what some one believes to know about a another.
12. According to the voting data from the Weakest Link,which two groups of people are most likely
to be discriminated against in that setting.What type of discrimination is being practiced in each
case? Explain.
The two groups most likely to be discriminated were elderly people and Latinos. The elderly are taste based because the people didn't want the elderly around because they don’t fit or other similar reasons. Hispanics were discrimination information based because people think that Hispanics are not good players.
13.The data says that both men and women lie more about themselves on the dating sites in characteristics than what is actually of the population.
14.A motivation for these people could be that while they lied to this person to make them be perceived as something they're not, they hope that the other will still like them for their other traits and didn't mind whatever lie they told online.
1) Klu Klux Klan came into existence immediate aftermath of the Civil War by six former Confederate soldiers in Pulaski, Tennessee. The six young men, four of whom were buddings lawyers, saw themselves as merely a circle of like-minded friends n got that name. Their level of popularity changed, they lay largely dormant until 1915 when D. W. Griffith called them crusaders for the white civilization itself. addition the Klu Klux Klan's popularity change big when Stetson Kennedy joined their group and sold them out to the public through the Superman TV causing them to decrease.
ReplyDelete2)Stetson Kennedy planed a big role in the dwn fall of the Klans popularity in the South when he spread what the Klans thought was a secret to the public. Stetson made the Klans believe he was for them not knowing that he hated them. Stetson made sure he learned every secret the Klans had in order to expose them. When he felt he had enough information he told his union friends that the Klans where about to have a union-blusting rally, that didn't work the Klans where strong. When he realized that didn't work, one day an idea hit him sayin what if i use kids to get the Klans secrets out or the Superman radio show. Stetson went to the producer and tld him all of the Klans secrets which they used to make in their shows. After some few shows all the Klans secrets was out causing their popularity to fall because they became lesser.
3) The term "information asymmetries" mean condition in which a least some relevant information is known to some but not all parties involved. The information asymmetry causes markets to become inefficient, since all the markets do not have access to all the information they need. Some examples of information asymmetries we encounter in everyday life are, information monopoly, the markets for used cars, and the health insurance market.
4)Information asymmetry can sometimes be competitve. Its like potential buyers when they face information asymmetry in evaluating services prior to purchase. Since such asymmetries import cost on buyers, there exist an incentives are to lower such cost. This incentive may be exploited by service firms that diversify into other services that meet the needs of existing customers. In other cases individuals may know a lot about something and they might want to sell something to other individuals, the sells people who compete for the costumers given some people more information than others
5) Internet has affected the prevalence of information asymmetry by making information asymmetry decreased because now if you are about to buy something most people look on the internet and read about the things they are about to buy before they buy, the seller can not tell them what they want because they already as the costumer knows everything about the item. If they have internet they read about it .
6)information asymmetries facilitated the corporate scandals that occurred in the early 200s because the big name business were doing "under the table" deals which then came out to public, some of the deals were trading information about something which caused the scandals with Martha Stewart. there were more things.
7) one thing i can think of is like a Lawyer. When you have a case and get a lawyer your case may be little and does not need a lawyer but you do anyway. the lawyer will make your case very big and serious just to get some money out of you. Another example is like a Doctor, when you don't even need surgery they will say ooo you need it so you can life, without it you can't, they lie just to get some money out of you.
8) The real estate will try hard to deceive their client by making them think o this house is really nice and you will not regret it, but they are lying they are the ones that are going to benefit a lot from the house not the clients. they tell them little things about the house. When a few clients know what the real estate people are doing to them they will start get mad and not trust in them.
1. I never would have expected that the place I would learn a lot of information about the KKK would be in an economics book. To this day, seeing why they formed and their goals and violent actions, even if they were not as common as people are meant to believe, just amazes me with how disrespectful and small minded people can be. There's just no reason to treat people so badly.
Delete2. I was really pumped reading everything about Kennedy. You always see these movies or stories about the secret agent that infiltrates the enemies domain, and that's EXACTLY what Kennedy did! He was a real life secret agent! Without actually being a secret agent of course. Seeing how he spread the information of the KKK, by the idea of kids game, and publicly broadcasted it on the radio waves was awesome. He's like, "I don't like this. But I'm white, I have family who was in the KKK, I don't agree with them, so I'm going expose them." And he did!
5. The internet, for many reasons, is a powerful tool. For business, it allows to get their information out there and publicize their company so that they get more business and money. At the same time, it allows for their costumers to learn the secrets of their company, and to see what they will really be getting our of their policy, or whatever they may be buying.
13. I agree with your reasons for why people would lie on the site, but I still think it's ridiculous. Yeah, you may not think that you're the most attractive person in the world, but why would you want to find someone who doesn't love you for you? Why lie and find someone who loves the lie, rather than tell the truth and find a person you loves the true you? It just seems stupid to me.
14. I agree with you point about the face to face meetings, I think that that is something they should be expecting. Why join this site if you do not intend on really connecting with this person? That's what the site is for! Be the true you, and find someone who would like to meet you. You never, it could be that person that loves you.
9) The real estate people will use big words and nice nice words to deceive their clients, words like oooo this house is so pretty lots of people want it but i saved it for you, and other things but they know that the house is not nice. Also they will use nice words for the prices to make you think its a good price but not.
ReplyDelete10) One example i can think of is people who design at a party, they will try and make you buy the expensive things that you don't need for they party, they will say this is really appealing and stuff. they will make you buy expensive things so that they can get more money out of you.
11) Information based discrimination is when someone judges someone that lets say wants a job based on they past, how they were a bad person and had lots of tickets and a taste-base discrimination is when someone says to someone i don't like you and will not give you a job because you clothes are not nice and your hair cut is bad. People will discrimination people because they know a lot about something and the other people do not
12) The elderly will be taste- based discrimination because they will think ooo they are old and they do not enough skills and they will not like for them to be around. the hispanic people will be information based discrimination because people will think they are poor and will not do . well. thats is how they are voted of the fact.
13) People on the dating site will lie about themselves or tell the truth to fund their match, i think most people lie about themselves for they think their real self is not attractive. i think that is what the broader population do, they lie about the information they give out.
14)i think what motive them to do so is maybe the situations they have been through when they were looking for some without the internet, the other sex might have not like looks or their personality so when they are doing the internet sits they lie thinking the other sex will like them better. i don't think they think too much sometimes about them meeting face to face someday because they can change and fit the personality they so are make sure when they are talking about themselves put a little truth inside so the other sex will not know so much. i also think that they will make sure the other sex likes them through the site before they met face-to face
1. The Ku Klux Klan (KKK) was originally a group of confederate soldiers that, after the civil war, made to terrorize non-conservative non-whites and wallow at the outcome of the war. The popularity of the KKK varied dramatically from the start in the mid-1800s to about the 1960s when the fluctuation stopped. When whites men wanted to have more respect and authority, they join the group. This led to a large rise in popularity. But when the civil rights movement started to take place, the size of the Ku Klux Klan decreased dramatically.
ReplyDelete2. Stetson Kennedy was a white anti-bigot that believed in equal rights and lived in Atlanta, Georgia. He went undercover into the KKK to try to take it apart from the inside. His best way of attacking the Klan was by learning all the passwords and organization of the Klan. After he gathered plenty of info about the group, he fed all the information he could to the producers of the Superman Radio broadcast show. Together, they revealed mounds of information about the Ku Klux Klan including passwords, order of hierarchy, secret language, and more. Once members of the KKK caught onto this, they began to fear their organization is not that secret and dropped out, leading to a massive decline in the popularity of the Klan.
3. An information asymmetry is when one group or individual knows more than the other about something dealing with their relationship. Someone selling his or her car knows more about it than someone who will buy it (unless they have the carfax, of course). A pharmacist knows more about someone’s prescription than they do.
4. Information asymmetries can create competitive advantages for particular individuals. Someone who knows more about something can have more control over an exchange between them. For example, if two people are bidding for a pen and one knows that the other will stop bidding at $30,000; he or she might push the price up to $30,500 to get a competitive advantage over him.
5. Once The Internet was invented, information could be accessed so much easier than before. This makes information asymmetries much less often occur because people could just get info about their exchanges on the web instead of hunting it down or not knowing at all.
6. In the early 2000s. Enron and other large corporations knew large amounts of information about the future of their companies, which put them at information asymmetries. With them knowing about these business moves, they could make the right decisions in their economic favor.
7. If someone is selling their home they fear not selling it or not selling it for enough. They could know that there is serious water damage but this will take the value of the house down. It makes this person trying to sell his or her home worries more to think that buyers might notice the water damage and not want to live in the it, or at least for a highly reduced price.
8. The authors explain that real estate agents use colorful words to advertise a house. If a sign says something detailed about the house, it is usually a good property but if the words are held loosely or general like “fantastic” or “Wonderful!” it means they are trying to make it seem better than it actually is. As information becomes more obvious to potential buyers, there might be less trust between the buyer and the agent.
4) Another example i have that goes with the biding example is from eBay, the people on eBay set a price that is not the final price of their object they are selling it for and they know that and we don't so like if the iPod is 95.50 today when you bid someone else bids and you lose, or the owner raises the price, they know that you will not stop biding so they raise the price to get a competition going on between you and another bider.
Delete5) Also it decreased information asymmetries because before the person who is like trying to sell you something at a bad condition knows that you do not know the conditions about the item for you have nowhere back then to get that information from expect the owner but now the owner knows that their is internet and you have research about the item so you know as much of the information or condition of the item as they do so they will not try and give you less information because you know all. That is maybe another way information asymmetries have gone down.
14) Also they might lie on their dating site because of maybe past experience where they told the other sex every true fact about them but they didn't like that. So on the site they will say "let me not tell this person everything for now for maybe if i do they might not like me as to if i tell them later on when we know each other more.
12) Another thing to about the old people how they taste-based discriminated is people may think they will get tired to fast and not work which will cost their business to go down
13) I agree with you that they are lying about their personal information about some times some people say the truth but not the whole truth. Also another we can add is that the biggest percent of people who lie about their personal information on dating sites are always greater than the ones who say half of the truth and half lies.
9. Real estate agents use words that a quite broad to hide flaws, which implies a lower sales price. If an agent used more specific and detailed words like “granite countertops” it implies some better worth in the house.
ReplyDelete10. Stock brokers specialize in buying and selling stock for people. Stock brokers, opposite of real estate agents, want their clients to make more money so that they make more money.
11. If someone is a subject expert and thinks they can generalize what certain people know in a process called taste-based discrimination. Information-based discrimination is when the person already knows something about a person and judges them off what they know.
12. Old people are taste-based discriminated against because people think they are forgetful. Young black men are taste-based discriminated against because white people think that they are mostly uneducated.
13. People who participate in Internet dating sites are far more appealing than the rest of America. This suggests, however, that these people are lying about their personal information.
14. People might lie on their online dating site profiles to make themselves more appealing and make people want to hang with them.
3. I like your example of the car buying and the pharmacist. It gives a good understanding of information asymmetries.
Delete4. I think that bidding is an excellent example of competition. People can take extra money out of people if they have more information.
8. I agree that with more information about the agents scheme, buyers can loose rust in the adds.
12. I agree that old people are taste-based discriminated, but what about the Hispanics whom are information-based discriminated?
14. I agree that people want to make themselves look more appealing, but what happens when they meet face-to-face?
1.) The KKK was formed after the civil war by 6 Confederate soldiers. They would go along at midnight doing harmless pranks wear white robes and put pillow cases on their heads. By the 1920, 8 million other people where inducted into the KKK after a film was made about them. The start of WWII and with a number of scandals, the KKK decreased in size.
ReplyDelete2.) Kennedy had went undercover with the alias "John S. Perkins". His objective was to join the KKK and learn everything about them. He would then tell the public about the secrets about the KKK. As he ranked higher he found more information about the KKK that he later told to the public through radio stations.
3.) Information asymmetry is when a party knows more information than another party on the same subject. They than use their knowledge as an advantage. One example is when someone wants to buy a product that they didn't do any research about. So when they go to buy the item the seller sells it at a price higher than it's actually worth so the buyer buys it because he doesn't know he is being tricked.
4.) It's an advantage because the company that practices information asymmetry will get more money and faster than it would've if it sold their items at what the should cost.
5.) The internet provides information and costs from more than one party so you will know if you'll be tricked out of your money. This gives companies a disadvantage because it is now harder to trick people into paying more than they should.
6.) When a houser buyer wants to buy a house, s/he would go to a real estate agent for help. That real estate agent will use words to make it seem like you getting a good deal on a house but in actuality you're paying way over than the actual cost of the house.
7.) When a someone feels fear, they will want to escape the feeling in the seemingly easiest way out. When you go to a mechanic to get a tune-up on your car, the mechanic might through in "potential problems" he observed while working on your car. The driver might get scared and fear he might not have the money to fix a big problem so the driver agrees to have the car fixed of its "potential problems".
8.) If more clients are aware of the tactics agents use when buying homes, buyers might be very cautious when dealing with workers. If the agents are more aware that people are catching on to their scams, they might start being more truthfully when conducting business.
9.) An agent might use specific words to help the buyer now what type of house it is. For example an agent might say the house is "well maintained" meaning the house is old but it hasn't fell to pieces yet.
10.) An example is when you go to buy groceries at a store like Giant Eagle. They encourage shoppers to be member and to buy more food so they can get cheaper gas at the pump.
11.) Information-based discrimination is a type of discrimination that says you can't work here because you have a record of a bed temper. Taste-based discrimination is a type of discrimination saying you can't work here because your accent is too strong.
12.) The two groups are African-Americans and hispanics. Hispanics have a information-based discrimination because people think they tend not to work. Also African-Americans have a taste-based discrimination because some people don't want to work with them.
13.) People on dating site tend to lie about themselves. They make themselves look like they are the perfect person for the other sex. For example are man might say he is tall, handsome, and makes a lot of money while a women might say i'm super attractive.
14.) A way to motivate people to be truthful on dating sites is to have a little message when making an account that say something like, " Lying about yourself will only keep the thing you want away from you". Meaning if they lie on here, you might not get anything in return because no one likes being lied too.
1. Nice short sweet and to the point history of the KKK, it was simple yet it still included many if not all of the major points.
Delete2. You left out a big part, he also painted the KKK as the bad people by making heroes like Superman fight the KKK which made the children believe they where bad too.
6. The Real Estate Agent will also trick you into selling your house early because the extra commission isn't anything compared to what they could get if they just worked on selling another house while they where supposed to sell yours.
7. This is also an example of yet another business where Information asymmetry is practiced in a manor that will help the business gain money.
11. Information based discrimination might also be that the person who is discriminating against you just believes something about you that might or might not be true. This can be things like stereotypes.
This comment has been removed by the author.
ReplyDelete1. The Ku Klux Klan started out with several confederate soldiers after the civil war and since then has had many ups and downs. At one point, when they a following of 8 Million people brought on by the making of a movie that showed the KKK as a good organization.
Delete2. Stetson Kennedy was a man who went undercover inside of the KKK and secretly fed their secrets to children using the radio. As the Klansmen realized their children knew all of their secrets and thought of the KKK as bad so instead of being put in a situation where their children would possibly find their robe they left the Klan.
3. Information asymmetries are just when one party has more information that a second party and use it to their advantage. Examples of this are things like Real estate agents and Car Salesmen.
4. Information Asymmetries definitely create competitive advantages. Say, for example, a real estate person. They may tell their client to sell their house fast making them loose $10,000 just because they could do something better with the time while when they sell their house they make the extra $10,000 because they keep it on the market for longer.
5. The Internet has helped the spread of knowledge, which has then helped to spread information asymmetries. People may read something on the Internet and they will believe it helping the spread of these such asymmetries.
6. Information asymmetries in the 2000s where in many things including stock. Many people where caught for selling/buying stock because they knew more than other people about what would happen to that stock.
7. Fear makes people do irrational things, when one side doesn’t know all of the facts and they are afraid there is no telling what they will do. Say one party thing the economy might collapse, they run to the bank to get all of their money out while another party knows nothing will happen. What ends up happening is that the scared party will ruining the economy making everything worse.
8. The authors of this book use the case of one of the authors friends, “K”, who was prepared to offer $450,000 for a house they wanted to buy but first called the other persons realtor and what the minimum amount their clients might accept and was scolded but then at the end of the call they then said that it would go for much less than he would think. In the end the owners of the house ended up loosing $20,000 while the realtor only lost $300. As clients become aware of this behavior it will most likely lead to second guessing their realtor and even maybe people selling there homes without a realtor.
ReplyDelete9. The realtor of a home chooses his/her words carefully for their signs. They choose words that describe the house’s features in some way such as “Granite” if they want to make you bid higher, but if they want you to bid lower they will use words that describe the house in general, usually adjectives.
10. Plumbers, accountants, lawyers, and telecommunication repair technicians are other types of people usually hired by business or individuals. Most of these people have incentives that differ from the clients in that what drives them is time, and as we all know, time means money. Why do something completely right the first time if you can do most of it or at least enough of it to get by in half the time and get double the money because you could do 2 in the time it takes to get one done?
11. I believe that the information you have can only affect your information-based discrimination and would have very little affect on your taste-based biases. You might think that all Latinos aren’t smart but if you gain more information you can change that bias but that won’t change if you just don’t like them (Which is taste-based discrimination) because of some opinion you have.
12. The two people most likely to be discriminated against are Hispanics and elderly people. In the Hispanic case information-based discrimination is taking place because most of the contestants believe that the Hispanics are poor players even if they are good. As it said in the book they will vote them off in the beginning even if they are good but will keep them in the end because they want “poor players” around at the end to make it easier to win. While in the elderly case the discrimination taking place is taste-based, they just don’t want the old people around (Maybe because they smell like moth balls?). It doesn’t really matter about their skill in both cases they are just voted off based on what other people think about them.
13. The data mostly shows that men and women greatly exaggerate on their online profiles. Most said that they were above average with very little being very honest. Most of the men like to stay inline with the averages in everything but looks while the women liked to go below the average in weight and above the average for number of blondes.
14. The possibility that if/when they meet face to face there will be enough of a connection that it won’t really matter what they look like or how much they weigh is what motivates online daters.
1. The KKK was made up of 6 Confederate Civil War soldiers. They were a terrorist group. They burned, shot, lynched, and intimidated people. They were shut down barely a decade later by legal and military interventions of Washington D.C. But in 1915, D.W. Griffith's film sparked there return. And if that wasn't enough, they burned a 300-foot cross in Atlanta, Georgia, making that state their headquarters. The only one who could stop them was Stenson Kennedy, who's 14-room house maid was tied to a tree and raped by the klan. First, he joined the klan undercover. He learned their secrets and true intentions. Next, he had a radio show called "The Adventures of Superman" that broadcasted during meetings and rituals with the Grand Dragon. Thanks to that, the klan had no new members and no one was at their meetings. They were finally shut down.
ReplyDelete2. Kennedy, after learning about the klan as member undercover, decided to make a radio show called "The Adventures of Superman." Broadcasting during meetings and rituals with the Grand Dragon, their secrets were exposed to the public.
3. Information asymmetries are when a person has more knowledge than another on a topic. Every day we go to school, the teachers share their enormous amounts of information with the students. Up until the student has the same, if not more, information than the teacher.
4. If a court case is present, the plaintiff's lawyer may have more information about the crime than the defendant, or vice versa. Whichever has more information, or enough to convince the jury, wins the case.
5. People can now compare prices for products amongst different companies, people can assume of information that may or may not exist, and people can use information to make other people feel stupid.
6. They were barely detected, people trusted them due to lack of information, and they also played on fear.
7. Say you go into a game store and see a new copy for $60 and a used copy of a game for $45. Of course you would go for the cheaper copy, but what if you were getting for someone? The fear of the cheap copy having scratches and fingerprints on the disc, thus giving the person a bad game, pops into your head. Based on that fear, you buy the new copy. But then a person sees that used game and you think they got a sucky game. Then he or she shows you the disc, and it turns out to be in mint condition. You just got ripped off due to the fear that the cheap one was crappy.
8. When K. told the agent to ask the homeowner the lowest price he or she would accept, the agent insulted him because the thought "goes against real estate ethics." Because of that, the homeowner lost $20,000 and the agent lost a mere $300. If this behavior continues, the homeowner won't need an agent can just tell you the lowest price.
9. If an agent uses a positive term like "Fantastic," the home buyer would bid high, but if he or she uses a term like "well-maintained," the home buyer would make the price lower.
10. Lawyers are hired a lot by businesses and people. There incentive is obviously "fighting for you," but the clients incentive would be getting legal revenge on someone in court.
11. If a person has a lot of information and/or has experienced it, they can discriminate. But if a person is the total opposite, and has no idea what they're talking about because they don't choose to experience they cannot discriminate.
12. The 2 groups are Hispanics and Elderly. Discrimination: information-based for hispanics and taste-based for elderly .
13. Men and women who participate in
Internet dating sites relative to the characteristics of the broader population mostly have "above average" looks, are married, and don't usually post pictures of themselves.
14. Fear that they won't be attractive in person would definitely make them lie. Or fear that they won't date long because of conditions they have, like autism.
1. Describe,in broad terms,how the Ku Klux Klan came into existence and how its level of popularity
ReplyDeletevaried over time. In addition,identify specific factors that caused the Klan’s popularity to rise or fall.
Formed soon after the Civil War, The Ku Klux Klan was first set out to scare people riding around in white sheets along country soon. Soon bored with childish antics, the group decided to turn into a terrorist group set out to scare and kill emancipated slaves.
The clan dominated for about ten years, until the they were brought down by, mainly, military force. They became large again when a movie came out The Birth of Nation premiered showcasing the clansmen as "Crusaders for white civilization." The Klan laid low while WW2 took over, but as soon as that was over, the showed that they were ready to start back up by burning a 300 ft cross.
2. Explain Stetson Kennedy’s role in the Klan’s ultimate decline in popularity in the South,focusing on the role the dissemination of what the Klan believed was secret information played in that process.
Kennedy went into the Klan as John S. Perkins, taking in his uncle's name, who was a true Klan member. He would attend Klan meeting and run home to take notes on everything he had learned. He learned their handshakes, took their oaths, pad his dues and worked his way up into the ranks, which also came with a black robe rather than white. He passed along information to his Attorney General od Atalanta friend, who was a Kal buster. He then wrote letter to the governor with proof that Klan violated terms being, non-profit and non-political.
But what really got attention, was when he was inspired by children playing a "secrets" game and he contacted the writers of a Superman radio, and began to feed them Klan information.
Overall, it was his understanding of the power of information that made him so crucial in this process.
3. Explain what is meant by the term “information asymmetries” and give examples of information
asymmetries we encounter in everyday life.
"Information asymmetries" is a term that describes the relationship of a buy and seller, when one party knows more information than the other.
When you buy lunch, the person selling, say pizza, knows more information about their pizza than you do.
When you sell, say your no longer needed MacBook charger, you know more about your charger than the person you are selling it to.
4. Explain whether,and if so,how,information asymmetries create a competitive advantage
for particular individuals.
In the example of a costumer buying a car, the car dealer is at a much greater advantage than the costumer. Tough, the costumer may have down their research on the car, they do not know what THIS particular car has gone through while on the car dealer's lot.
5. Explain how such innovations as the Internet have affected the prevalence
of information asymmetries.
The internet allows for consumers to easily search, see and compare companies products, from cars to insurance. It gave the consumer more information than original given, allowing for faster compilation and decision making, as well being better informed to know if they are being scammed or not.
6. Explain how information asymmetries facilitated the corporate scandals that occurred
ReplyDeletein the early 2000s.
Companies were able to hide crimes, forge numbers on how much money they were making, sell and buy stocks quicker, and companies were also able to give "preferred" members "preferred" prices.
7. Provide examples that illustrate how the combination of an information asymmetry and fear
can lead to inefficient outcomes.Explain how the introduction of the element of fear makes
the problem of the information asymmetry even worse.
Fear increases the problem of information asymmetries because they use their high knowledge as leverage over those with less knowledge. Car dealerships make you believe that a $50,000 car is safer and can withstand more than the $25,000, or a doctor who is using simple diagnoses' to pressure into have a surgery, that costs thousands of dollars, that you may not really need.
8. What evidence do the authors offer to support their claim that real estate agents exploit
an information asymmetry to their client’s detriment? As more clients become aware of
the possibility of such behavior by agents,how might it affect the relationship between the two?
Some real estate agents use the information that they have from the house owner and from the market to convince the seller and buyer that the house is worth far more than it actually is in order to get a few extra dollars in their own pocket.
The buy and seller become more about what words and signals to look for, signal that the agent may be implying that the house is not worth bidding as high as the agent told the owner that it would be worth.
9. Explain how the choice of terms a real estate agent uses to describe a particular property conveys
additional information about the property,and hence the price a potential buyer might be able to
successfully offer the seller.
The words of an agent are crucial to the ads and speech of a real estate agent. Key words can tell a potential buyer whether or not the agent believes that the property is worth biding high or low, which will then also determine how much the property will really sell for.
10. This chapter examines how the economic incentives of a real estate agent may differ from those
of his or her client.What other subject matter experts are often hired by individuals and business-
es? Might they have incentives that differ from those of the clients that hire them?
Doctors have the incentive of earning more money for the more clients they see, and for the more surgeries preformed.
Workers at a department store may have the incentive of a bonus for the more sales that they make.
In California, teachers had the incentive of a bonus at the end of the year if their class scored above a certain level on the state mandated tests.
11. Explain how the information a person has can affect his/her propensity to discriminate.
ReplyDeleteAs part of your explanation,distinguish between taste-based discrimination and
information-based discrimination.
Whether a person is consciously aware of it or not, they could be discriminating against another person. A person could be basing their discrimination off of off of maybe just not wanting to be around the other person, which is taste-based, or because they believe that the other person is unqualified, information-based.
12. According to the voting data from the Weakest Link,which two groups of people are most likely
to be discriminated against in that setting.What type of discrimination is being practiced in each
case? Explain.
The Hispanics are more likely to be discriminated through information-based discrimination, because people may believe that they are just not educated enough to be on their level of competition.
The elderly, though, are discriminated through taste-based discrimination because people just may not want them to be participating in the show.
13. What do the data say about the characteristics of men and women who participate in
Internet dating sites relative to the characteristics of the broader population?
Many of the online daters would fudge their statistics. They would often say that they weighed less (for woman), had a higher income than they really do (men), and a variety of other things.
14. Assuming many of the people who use Internet dating sites are not being truthful when they
describe themselves,what could motivate them to do so,knowing that if they ever actually
met a date face-to-face,the truth would likely come out?
It is always best to tell the truth, just as a general rule of life. When concerning the lack of truthfulness people put on their sites, that could be a really big mistake. If you say that you are blonde, 120 lbs, and are a vet, ut in reality you're a red head who weighs 135 lbs and you're actually the receptionist at the vets office, that could make a real difference to someone. Lies will come out, generally, they can't stay secret forever.
The answers to your question are really good and well thought out. I like how you almost never make generalizations about the public as a whole, especially since the public can never ever 100% agree on everything. But do you really think that people always discriminate whether it's conscious or not? Also, for number fourteen, WHY do you think people lie about themselves online? All in all, though, you have a really strong response.
Delete1- The KKK started after the Civil War by 6 Confederate soldiers. The group stared out with doing simple pranks but over time it grew more physical and violent. The Klan mostly targeted African American people and whites who thought it was right to give slaves a chance. The KKK rose but then fell because they were participating in illegal acts.
ReplyDelete2- Kennedy’s role was to gather secret information about the KKK. He would go undercover and get secrets about their meeting places. He would then tell the Radio Host who would tell his listeners which resulted in them taunting the Klan.
3- The term information asymmetry is when one person or group has better or more useful information than another person or group. An example of this would be when…
4- Information asymmetries create a competitive advantage because the person or group that has the better information is going to have more supporters and will have an advantage over the other person.
5- The internet has affected the information asymmetries because people could do lots of research about the subject while another person could only have their background information. In this case the person who has lots of research could either be benefited if they know what they are talking about and used accurate websites, or it could hurt them because they could know nothing about what they read.
6- People would give out information that was not true to some people, and make them believe that it was true. Also many people would advertise false information by changing something about a fact that was actually true. Lastly some would give out information to some people, but not tell others creating an information asymmetry.
7- One example, is lets say somebody is when doctors prescribe/ diagnose a patient with something. What may actually be happening is something that is normal, but the doctors would make it seem a lot worse to scare you and to get more money.
ReplyDelete8- Real estate agents would lie about the prices of the house and the features of it. The home could be in good shape for when it was built, and be in a school district that was average, but the agent would tell their client that it was in amazing shape and was in a really good school district. Also, they would lie about the prices saying that somebody may be asking for the house at $245,500 so you should ask for $260,000… when really the house is going for $220,500 and they want you to pay more money.
9- The real estate agent would use words that may not mean what you think they mean… such as, great! Fantastic! And charming! These words are so vague, and could be used to describe anything.
10- an example that I can think of would be any type of designer (homes, parties, stores ect.) They would want you to purchase the pricier products because they would make your area seem more high class and luxurious.
11- Information based would be if a company was hiring new people they wouldn’t hire person A because they had difficulty showing up on time, and didn’t work very well with others. Taste based would be if person A didn’t get hired because the boss doesn’t like the way they dress or the way they present themselves
12. The two groups are Hispanic and elderly people. Hispanics would be information based because people would think that they are poorer and are not educated enough to do the job. Elderly people would be taste based because people might not want them around just because they are too old.
13- Men are saying that they are richer, taller, skinnier and better looking than the average man. Women are saying that they are thinner and taller, and also better looking than the average woman.
14- A person could want to lie about what they are really like so they have better chances to get a date with anybody, or a specific type of person they are looking for. Somebody could just lie a little bit on each thing hoping to appeal to many different people. Although meeting face to face could be a problem if you have lied about yourself people always could put up an act or just act a little bit different than what the other person was expecting hopefully still impressing them.
I don't entirely agree with your answer to #1. At the time some of their acts weren't illegal. Also registration in the KKK would;t have been affected by how legal their actions were. Members were just haters, it didn't matter whether their actions were legal or not. However, their members did have and ego, which is why membership fell after the KKK mockery in Superman.
DeleteYour answer to #7 brings up a very important issue/problem in healthcare. The amount of doctors who get kickbacks from medical suppliers is ridiculous. Another common example would be the number if doctors who go on tv and endorse a product. Frankly I wouldn't want to go to them because I know they have a personal agenda. I think that doctors that do commercials should suffer repercussions or at least be monitored more closely.
In answer #10 I think it's interesting how real estate agents think that using vague terminology might make a house more desirable. However, as a consumer I am wary about buying a product that is vaguely described, and especially when they exaggerate terms that are ultimately opinionated. When comparing products I look at their specifications first and then consumer feedback.
With regard to responses #13 and #14, I don't want to be mean/blunt and say that you have to be desperate to web date, but there are plenty of other ways to meet people. I feel the type of person prone to date online is someone who is insecure. Dating online lets them hide behind facade and avoid getting hurt. It only makes sense that someone who's insecure would exaggerate their features a little. A more arrogant person I feel wouldn't use web dating and would exaggerate their features more.
1. The KKK started out small, with six soldiers. They started out with harmless pranks. They began to do bigger things such as lynching, shooting, and burning. The KKK was pretty dormant until the release of The Birth of a Nation. By 1920, it had like 8 million members. But once world war II started, the klan’s size began to go down.
ReplyDelete2. Kennedy joined the Klan undercover. He wanted to retrieve information about them. He used John S. Perkins as an alias. Kennedy paid the Klan fees and took the oath and everything. Kennedy gathered all his Klan information and began giving it to the producers of the Super man radio show. The radio producers began to write four weeks’ worth of programs in which Superman would wipe out the Ku Klux Klan.
3. Information asymmetry is when someone has more knowledge of a subject than another person. A few examples of that are doctors knowing more than an intern, or a teacher knowing more about geometry than a student.
4. People can use information asymmetry to abuse their power. If a boss or a CEO or whatever knows more than a little old secretary, than they can definitely be taken advantage of.
5. I feel that it would be very hard for people to have information asymmetry these days with the internet. Almost any and everyone can access the internet or can get some access. Nothing is a secret. All it takes is one search in google, and anyone can obtain any information.
6. Companies hid information and lied to the employees. Everyone was lying about stuff, to keep information asymmetry going.
7. Information asymmetry and fear can lead to inefficient outcomes because if someone knows more about you than you think, or that they should, it can lead to a very hostile environment. Like if you take an employee and a boss. Maybe the employee made some negative comments about the boss, and they found out some how. Then that employee may always be in fear that the boss will feel differently about them and treat them different.
8. Real estate agents use different ways to fool their clients into buying properties that probably aren't as good as they're advertised. They may say things like "this house is a bang for your buck!" or "this house is located in a very family friendly neighborhood."
9. The real estate agent might say something like "flawless, totally renovated, and cozy.They use things like this to possibly cover up the flaws in the house. They may also include things like marble counters and hard wood floors to try to raise the price of the house.
10. Salesmen, Insurance companies, and people who do taxes are a few examples. I'm sure their incentives are WAY different.
11. If a person has information on someone (their past for example) it may cause the person being discriminated against to miss out on something. Like if a felon has turned his life around, and applied for a job. He may not get the job because of his prison record.Taste based discrimination is when someone prefers not to have interaction with another person. Information based discrimination is whenone person believes that another type of person has poor skills, and acts accordingly.
12. Hispanics and elderly white people are most likely to be discriminated against in that setting. On The Weakest Link, Hispanics suffer information-based discrimination. Other contestants view the Hispanics as poor players, even when they may not be. Elderly players are victims of taste-based discrimination. In the early rounds and late rounds, they are eliminated far out of proportion to their skills.
13. Men and women who participate in internet dating sights are known to lie a lot. About appearance mainly
14. I think people still lie while they're online dating because maybe they think they can develop such a good relationship online that when they finally meet, the person will already love them enough and not care about the appearance thing.
1. The Ku Klux Klan came into existence after the Civil War. Six former Confederate soldiers came together and created the group. The Ku Klux Klan’s popularity level varied a lot over time. At one point in time, the Ku Klux Klan had over eight million members. At other times, the Ku Klux Klan seemed to lay dormant because of its lack of membership. One of the main reasons the Ku Klux Klan’s popularity fell it because of Stetson Kennedy. He was an undercover member of the Klan, which exposed the secrets to the nation.
ReplyDelete2. Stetson Kennedy was a newspaper reporter who went undercover in the Ku Klux Klan. He infiltrated the Klan, and found out all their secrets (including handshakes, plans, and secret phrases). He then revealed all those secrets on a popular children’s radio program.
3. Information asymmetries are situations where one party in a transaction, or activity, has superior information compared to the other party. One example of this in everyday life is insider trading in the stock market. One example of this in everyday life is music lessons. One party, usually the teacher has superior information about the activity. He/she uses her information to help other people learn.
4.In some cases, I do think information asymmetries do help some people create a competitive advantage for themselves or others. One example of this is insider trading. One group may have unreleased information on a stock, and they could inform another group to invest or sell their stock based on the information.
5. The Internet has helped level out the prevalence of information asymmetries. With the Internet, people can research information about a subject that they don’t know. This makes the chances of information asymmetry less than before.
6.Information asymmetries caused a lot of problems for a lot of companies in the early 2000’s. Merrill and Lynch, along with Salomon Smith Barney wrote invalid research reports of companies that they thought were “junk”. Another instance of this in the early 2000’s was Martha Stewarts situation. She was informed about some of her stocks, which she then dumped and lied about.
7. In the situation with the real estate agent and the seller, information asymmetry and fear can lead to inefficient outcomes. If the seller thinks that the real estate agent has information that he/she isn’t sharing, the seller might be driven away. If the real estate agent shares most of their information, the seller will probably be more confident about having their house on the market.
8.The authors state that when real estate agents sell their own houses, the treat them differently then their own houses. The usually sell them for 3% more than market value. They do this by using special market techniques that a client might not know or understand. If clients were to find out about this, they would want their real estate agents to treat the client’s home, as if it were their own. This would want their house to be sold for more, which would raise housing prices in the surrounding area over time.
1.) I really like your answer for this question. I like how you talked about the varying membership of the KKK.
Delete3. & 4.) I like you tied your answers to these questions (dealing with information asymmetry) into the whole stock market thing. Seeing that we're playing the stock market game, it all goes together. And I never thought about information asymmetries in the form of stocks.. I used a boss/ low level employee situation.
2.) I think you could have went a little more in depth about Stetson Kennedy. There was a lot more information about him than you listed.
7. I went in a totally different direction with this question... But I still think your response was good.
Good job!
9. The words a real estate agent uses might help a particular property sell for a higher price than average. Some choice term (such as “granite” and “maple”) help houses sell at higher prices. These words help portray that the house is better maintained, and worth the added price.
ReplyDelete10.Some other experts that individuals and businesses hire include financial planners, personal trainers, and assistants. These experts might have a few incentives that differ from the clients. An incentive financial planners would have is that they would completely understand how much money a client has (or in some cases, doesn’t have). A moral incentive that personal trainers have is that they know that they are bettering their client’s life and living style. An assistant would understand pretty much everything that their client is involved in, and they would probably take part in almost everything that their client does.
11. A person who has certain information may act more confidently than others. They may look down upon certain groups, who he/she believes does not know the same information that they do. There are two main ways that people may discriminate on others. One, taste-based discrimination, is mainly when someone chooses to discriminate upon someone else because they don’t want to interact with that person. The second type, information-based discrimination, is when a person is discriminated against because they are believed to had inadequate skills.
12.In the case of the Weakest Link, elderly people and Hispanics are discriminated against the most. For elderly contestants, they are mainly involved in taste-based discrimination. This is because people would rather not interact with them in the early and late rounds. Hispanics are victims of information-based discrimination. This is because people believe that Hispanics may be poor players, even when their not.
13. The data states that many people on dating sites lie about their traits. Many men say that they make more money than they actually do ($200,000 and up). This is probably because men believe that women are probably more influence by money than physical traits. Women on the other hand, were more likely to lie about their physical traits (70% of women claimed that they had “above average looks”). I think this is because women think than men are more influenced by looks than other traits.
14. I think that that people using dating sites would be motivated by knowing that they will be matched with a person that they would like, and possibly be able to relate to. I also think that they would be motivated by the fact that if they are not truthful in the way that they describe themselves, they won’t actually find someone that they are actually “matched” to.
1. The Klan came into existence after the Civil War and was a way to try to "protect" the south from the influence of blacks. It's level of popularity generally varied based on the social incentive of being involved with the KKK, like for example when their information was on the radio and in Superman comics it wasn't really secretive and just about anyone could probably figure out if someone was in the Klan based on what they learned about the Klan. Another example is when the Klan was disbanded it was clearly not popular to be involved with it because of the fact that it was legally not allowed to be.
ReplyDelete2. As the Klans "secret" information got out people wanted to be less and less involved with the Klan because it would be more obvious if you were involved based on what people had learned from the information that Stetson Kennedy got out there.
3. Information asymmetries are when someone knows more about something than the person that they are either helping with selling something or selling them something, a good example is when you buy a used car, the person you are buying it from knows most if not every single thing that is wrong with the car but they won't tell you unless you ask about it. You have less information than the person selling the car so there is information asymmetry.
4. Information asymmetries create and advantage for those who have more knowledge for example real estate agents use knowledge that they have of either the are or the home to try and get you to either settle with the house or try to buy another house that might get them a bigger commission.
5. Well the internet has made information asymmetry less wide spread, especially with insurance and car sales, because there are sites out there that are out there just to let you see which prices are the best and to help you have more information than the seller almost.
6. The cop orate scandals involved information asymmetry in that there were certain people who knew to get out of a company based on information they got before anyone else did and were able to take advantage of that by dropping stock in their own companies but telling everyone else that it'll be fine.
7. Well for example a used car salesman is selling a car and he knows that it is completely fine and ready to go right off the lot safe and sound, but based on what his costumer has heard bad things about this car lot and that they have cars that look like they are really good but you get it home and it just dies, so the costumer has this fear in their head that they are gonna buy a car and it's just gonna die when they get off the lot and so they are extremely cautious about buying a car at the lot. So both sides have information that neither is aware of, and while looking around the lot another salesman is getting ready to take another costumer on a test drive but when he starts the car some ridiculous malfunction happens and then the costumers who had already heard bad things about the lot are now scared even more than they were and now decide you know what, we don't want to risk this.
8. Well they seem to just want to get eh house sold, and where their client loses $30,000 they only lose 37 on their commission, and as clients become aware of this and buyers become aware of this real estate agents may soon become a thing of the past because this relationship just doesn't seem efficient to me.
ReplyDelete9. Well in the book it's said that broad descriptions generally mean something that is made to make the house look better than it is, but things that are more specific about the counter tops or the condition of the house are generally better at describing the house so broad terms mean a lower price in most cases, where very specific terms mean a high price, assuming the terms are positive things.
10. A lawyer might have different incentives than someone who hires them, for example a man is accused of murder and has to go to court, he hires a lawyer or the government hires a lawyer for him. He could have blatantly killed somebody but because that lawyer was paid to defend him that is what that lawyer is gonna do cause he'll probably get a bonus for winning the case even if he lets a killer free, but there might be social incentive for that lawyer to "throw" the case so that the man goes to jail because he truly deserves to but otherwise will try to defend him the best he can.
11. A person will discriminate generally based on stereotypes or on information they have from the past about a person or group of people, taste-based discrimination is generally based on what a person thinks of a person based on their personal preferences., where information-based discrimination is what someone thins of someones skills
12. Old people and latinos seem to be the most discriminated on. Latinos are discriminated based on information, they are thought to be poor contestants, where elderly players just seem to be booted because they just don't want to be dealt with.
13. Data on dating sites is made to make someone look above average where the broader population is truly average.
14. Because they feel that as long as they can get that date they can explain and if they really do have that face-to-face their ad did what it was meant to and they got to meet their date because as air headed as this sounds, people really do look for someone they can relate to and not necessarily the best looking candidate.
1. The KKK was started by 6 Confederate soldiers right after the Civil War in Tennessee. They started out with simple, somewhat childish, pranks, and then evolved to horrible crimes. They rose with the book, A Birth of a Nation, which depicted the KKK as crusaders for the white race.
ReplyDelete2. Stenson made a kind of game out of it. He broadcasted the KKK's "secret language" out through the radio, and a "Superman"game was made of it. Many members left the KKK because they were embarrassed their acts had been made into child's play.
3. "Information asymmetries," in simplest terms, is when one person knows more than other people. One example of this would be the Oscar Academy. They know the winners before anybody else.
4. It has many advantages, especially when it comes to selling things. If the seller knows that an apple is only really worth 60 cents, but the buyer doesn't know this, then the seller can sell it for $1.20. So, in this case, the seller has the advantage, but the buyer is at a disadvantage.
5. The internet makes it much harder to do things like I mentioned above. Of course, most people probably don't go online to find the lowest price for an apple, but for things like cars, renovations, televisions, or even furniture, people often go online to find out the going price for these things. It makes it more difficult to sell things for way above market value.
6. Multiple large corporations were making hidden deals, that eventually became public. These included stock trading, giving preferred customers better prices, and hidden debt.
7. Fear and information asymmetry play huge roles in how people decide to buy things. If you're going to buy a car and someone tells you can get "700 dollars off this car, but the sale ends tomorrow!" The sale might not actually end tomorrow, but you may not know that, and you're scared if you don't take it right now, you won't be able to save that money. So, in most cases, it's not beneficial to the consumer, but to the sellers.
7.) I agree, and really find your example of car salesmen to be true. It is rather like a lawsuit settlement. They may say the offer will only be on the table for another twenty four hours, but more likely than not they are just trying to bully you into accepting the settlement and holding the company harmless.
Delete8 & 9.) They will say anything, do anything, except the right thing. Really like the way you put these sections together, showing that realtors really take the most economically productive path for themselves.
10.) I disagree. someone trying to care for your injured dog is likely in the field because they truly care for the animals. Someone who is in nursing is likely doing it because they actually care. They didn't go on to get their doctorate, so they likely actually enjoy the helping aspect of nursing
13.) Too true. We will lie about anything if it gets us in a (perceived) higher spot. Someone might say that they are 6'8" if theysee that someone whom they want to date likes "tall" people, even if the person is actually only 5'5"
8. I don't know about everybody else, but for me, after reading about this information asymmetry (especially in real estate), I'm definitely going to do my research. An agent could say the home is worth much more than it actually is, or say that somebody is offering the owners $10,000 more than you're offering the owners, when in reality, they're offering even less then you. They're just milking you for all the money they can get, especially in this market.
ReplyDelete9. They'll use descriptive adjectives that don't really mean anything. They could say "spacious," but that doesn't really mean anything. You could have a 2,000 square foot room, but if it's filled to the top with stuff, it's not spacious. They'll say things are "up-to-date" or have a "modern" look, because it makes the image of the house in our heads look better.
10. Really anybody trying to sell something will (almost always) have the polar opposite view of the person to which they're selling the product.
11. The biggest difference between taste and information-based discrimination, is opinion. Taste-based discrimination is based on what you think about someone, while information- based discrimination is based on what you know about someone. For example, if you don't hire somebody because they have bad hair, that is taste- based, but if you don't hire someone because you know they're bad with people, that's information- based discrimination. If you know all aspects of a problem, you'll be able to make a more informed decision, but if you only know one part of it, it makes it much more difficult to make an informed decision.
12. Hispanics and elderly people. I don't think either one of these can really be strictly put into one of these categories. For Hispanics, it's a prejudiced information- based decision. There are preconceived notions about this race, and for that reason, they aren't hired. For the elderly, it's, many times, taste- based, but companies also don't want the medical costs of dealing with an elderly person.
13. People will lie about their appearance, job, marital status, and multiple other traits, just to seem more appearing. For the most parts, it applies to both genders.
14. They might think that if they lie about themselves to get the attention, once they have it, they won't have to continue to lie. It's the whole thing where when a relationship first starts out, you probably won't go out in sweats and a t-shirt, but once it evolves and you're comfortable, you'll wear whatever you want. So, if a person get's the attention by lying about appearance, job, etc., they might think that once they have the attention, their personality will win them over, and they won't have to hide behind a fake appearance.
1) The Ku Klux Klan originated as a group of six former Confederate soldiers who simply saw themselves as a group of people who shared similar views. They quickly evolved into much more; a large terrorist organization focused on scaring and killing freed slaves. The Klan receded within about a decade, but returned in 1915, and became focused on not only African Americans, but also Jews, Catholics and other demographics. The main causes for spikes in popularity were government and military intervention, as well as films and literature about white supremacy.
ReplyDelete2) Stetson Kennedy wanted to defend his country at home during World War II, and he felt its biggest threat was bigotry. He started by writing articles and books. He was driven by people being close-minded, and felt that the Ku Klux Klan was a threat to the entire country, not just minorities. He ended up going undercover into the KKK and secretly gave information about their plans to the attorney general, and later began to spread all of the Klan’s secret information to just about anyone. This made the “secret” information that made the Klan have any power completely useless.
3) An information asymmetry means that people on one side of some sort of transaction or service can have better information, or more information than other people. Examples of where this occurs could be with real estate agents (as stated in the chapter), financial advisers, and insurance agents.
4) It’s pretty easy to see how information asymmetries can give some people a competitive advantage over others. People that are experts, like the examples mentioned above, can have significantly more knowledge about the subject, and thus have the ability to take advantage of the people who use their services.
5) The Internet has a huge effect on information asymmetries, in the way that it spreads enormous amounts of information to people who wouldn’t have it otherwise. In other words, it “shrinks the gap” between experts and regular people. The internet helps to reduce how much experts can take advantage of people, examples being how you can now compare insurance, hotel or other prices easily.
6) The main issue with the corporate scandals in the early 2000’s was the fact that it was a group of experts and others working to keep the information secret, at the expense of all those who fell victim to their lies. Although the internet helps to make a lot of information public, that sort of information is still only held by the elite, and it ended up being manipulated by them as well. All of the transactions were private (at least until they got exposed), which means absolutely nobody thought anything was going wrong until it was already too late.
7) Fear and information asymmetry play hand in hand. In essence, experts use the information they have to intimidate others – to make them feel scared to challenge them. Most people don’t assume that you’re using your expertise for your own gain, and they think that because you’re the expert, they have no right to argue with you. This leads to the information asymmetry problem to become even more difficult to overcome.
8) The author states that real estate agents don’t really have all that much to gain by getting your house sold at the maximum price, so they may not work all that hard to make sure that you’re making the most money. They use the information that they have about the market to fool you into pricing less than it may actually be worth. As more people become familiar with the strategies used by real estate agents, they’ll become more reluctant to take all of their advice.
9) Real estate agents have terms they use to describe the house directly, while other times they describe the area or the neighborhood, implying that the house may not be worth as much. The author refers to direct descriptions of the houses features to correlate to higher selling prices, while the use of ambiguous adjectives such as “charming” and “fantastic” correlate to lower prices.
10) Other subject experts that could be hired by individuals could include insurance agents, lawyers or financial advisers, all of which have different incentives than those who hire them. Insurance agents receive payments for a discretionary service that might not actually be used, lawyers receive payments depending on multiple factors, while a financial adviser could be similar to an insurance agent, receiving payments for a potentially useless service.
ReplyDelete11) In the cases mentioned by the author, the knowledge of discrimination can often lead to discrimination. As stated, the perhaps predictable groups to be discriminated against on The Weakest Link: blacks and women, actually aren’t. One of the theories was that perhaps people are aware that others are watching, and purposely avoid looking as if they are discriminating, even though they end up doing it against other people.
12) The two groups most likely to be discriminated against on The Weakest Link are Hispanics and the elderly. The elderly suffer from taste-based discrimination (in short, people don’t want to play a game show with old people), while Hispanics suffer from information-based discrimination, which is essentially stereotyping, in the case of The Weakest Link.
13) The data collected from Internet dating sites suggested that a large portion of the users exaggerate about things like their height, looks, earnings, and weight when compared to the national averages.
14) Considering the fact that they’re using an online dating site, they’re probably mostly concerned with getting a date in the first place rather than being completely truthful. They're also probably hoping that if they're able to get a date with the looks or money that they lied about, that the person won't care that much.
1. The KKK was founded shortly after the Civil War by six ex Confederate soldiers. At first the six friends were having just a tinge bit of fun playing pranks and causing trouble. However as time went on, they became more violent and began their well known-terrorist acts. They were most popular during the white supremacist movement and then declined when civil rights became a prime issue.
ReplyDelete2. Stetson Kennedy was a 30 year old man living in Atlanta. He decided to go undercover within the KKK organization to see what he could do. Over time, he rose in the ranks and got his hands on valuable information. Wondering how to contribute to the downfall of the organization, he proceeded to feed the information to the general public through radio and other odd games that involved the Klan's secret codes.
3. Information asymmetries is when one person has more knowledge than another person on a particular subject. For example, a car salesmen knowing more about the car then the buyer.
4. Information asymmetries create a competitive edge when it comes to information. For example if an individual knew "dirt" about a certain politician. They could easily obtain anything they wanted from that individual within reason.
5. The internet has decreased information asymmetries due to the availability the information is to the general public.
6. The crimes committed by Enron in the early 2000s included hidden partnerships, disguised debt, and the manipulation of energy markets. Enron tried to get ahead of other companies by using information asymmetry propelled by the use of the internet.
7. Fear and information asymmetry generally have heavy influence on the public. Fear will cause many individuals to abstain from making certain decisions. Information asymmetry may cause people to not want to go out and just do anything without prior research.
Philip, I believe you did good job of defined what Information asymmetry mean. I thinks anyone who have never heard of the word Information asymmetry can understand it easily by looking at your definition of it.
Delete8. Real estate agents use clever wording to fool their clients into buying houses that may not be as good as they think. For example, using the term "Really nice neighborhood" to distract the buyer from the important details.
ReplyDelete9. The real estate agents use special terms to make the place sound better than it actually is and they correlate to lower sales prices. They also use words to correlate to higher sales prices to really show that the house is nice.
10. Other experts that have economic incentives may use terms like the agents. For example Car salesmen or salesmen in general.
11. If someone knows a lot about a certain subject or many subjects they might discriminate against people more because they know what too look for/what not too look for. Information based discrimination would be not giving someone a job because you know they've been to jail 2 times, taste based discrimination would be not giving someone a job because you don't like their haircut.
12. The voting data from the Weakest Link shows that Hispanics and the elderly are most likely to be discriminated against in that setting. Hispanics are being information based discriminated because they seem to know the most on the show and the elderly are being taste based discriminated because the other contestants just don't want them around.
13. The data says that many men and women lie about their characteristics to help attract others.
14. People could be motivated to lie about their characteristics due to the increase in attractiveness with false information.
8 and 9: You pretty much hit the nail on the head. The only thing I might add to each is clarification on how certain terms are meant to imply that a house isn't that nice, while other direct descriptions are. Then again, you kind of did that, it just wasn't all that clear.
Delete10: Salesmen are definitely people who can use information asymmetries to their advantage. The only thing I'd add is more examples, like how they might go about doing so. I think it'd probably be similar to a real estate agent, as far as the descriptions of cars.
11: I kind of interpreted information-based discrimination differently. I thought it was more similar to stereotyping. Maybe I just misread that part.
12: This is pretty much identical to my response. The author implied that people might be trying so hard not to discriminate against the typical groups (blacks, women), that they end up doing it anyway.
5.) I agree, but it isn't only the internet, it is also they people who saw economic potential to spend time researching and posting the information.
Delete6.) Really nice job going in-depth. A sentence long answer would have worked, but you really explained it.
8 & 9.) Spot on. Real estate agents want the most money for their work, so they will naturally push their clients toward the higher end of the price range.
14.) I think that the question is asking what could be motivation for them to tell the truth. Nonetheless, I find this statement true.
1. The KKK was started by some ex-Confederate soldiers during Reconstruction. The like-minded group originally would just pull pranks and do rather harmless acts masquerading in white sheets and hoods. However, as their popularity rose so did the amount of violence and terror infliction. People, mostly southern, backed the KKK in the beginning because they were fearing the affects of Reconstruction and they hated black residents. As WWII came along, registration dissipated because unity was more important than lynching. However, when the war was over they returned to the violence. Their final decline happened because a children’s mockery of their group made them feel stupid.
ReplyDelete2. Kennedy leaked secret information to a Superman show. This breach in security made many KKK members very anxious. The fact that their children now knew their codes was very disheartening.
3. It’s ultimately when someone has more details than they are eluding to. It usually takes some cohesion to get it out of the person. Best example I have is when you’re buying a house. The seller is only required to disclose certain things about the house. It is you job to get an inspector in to find any problems not disclosed.
4. It does create a competitive advantage for some in that the more you know the more you can exploit a consumer. It also allows for some to be able to market better than others leading to greater success in whatever industry.
5.With the internet the consumer has more power strictly because the information is more readily available. If I want to know more about a professor I don’t have to ask him/her for their bias opinion about themselves. I can go online to ratemyprofessor.com and look at what others have to say about them.
6. Because people were then enabled to search online for company staistics, discrepancies that hadn’t been caught were now open for the public to see. Information not previously leaked was now available to the general public, employees and competition.
7. Sometimes ignorance really is bliss. People, because of the internet are now more aware of more problems. This can be used as an advantage to some because they can spread fear about a certain issue via the web and people will make economic choices according to the fear. A good example would be all the “epidemics” in the world. When H1N5 (bird flu) first became popular, people were scared for their lives, as a result the medical/pharmaceutical industries, who held most of the knowledge, could use fear to get consumers to purchase anything because they knew people were afraid.
1. Really liked this is a general summary of the rise and fall of the KKK. Did a good job of explaining how their motives changed over time, and the reasons for their first and final declines.
Delete2. It's amazing how such a small amount of information can bring a group as large as the KKK down. Once everybody knows everything about you, you have absolutely no power.
3. Pretty much what I was thinking. It's really dangerous in the business world when people have so much more expertise than others. It allows them to take actions in their own self-interest, even if it's at the expense of their clients/customers.
4. See above. When people have expertise, they can use it for their own gain. Like in the chapter. real estate agents don't gain much from getting you the maximum price for your house, so they often undersell them.
5. Yeah, I can't even imagine how rough it was to do things like buying insurance, cars, plane tickets, etc. before the internet came around. It was so much more difficult to compare prices and find information about companies.
8. They (hopefully) know more about about the market than the buyer, therefore they can use their knowledge to help sway the buyer. However, they may not disclose everything about the market (ie the professor from Stanford). They can also say that the house has a mold problem, but not elude that the foundation is on the brink of disaster, which will eventually cost the new homeowner a hefty sum. Because consumers know this they are more likely to do their own research as well as remaining incredulous throughout the entire deal making process.
ReplyDelete9. Studies have found that indisputable, physical characteristics sell better than opinionated statements. A person would rather buy an “all brick” house than a house “in a good neighborhood”. This is partially because the physical term is more solid and there is less room for interpretation.
10. An example would be auto mechanics. Often times they use the information asymmetry to keep you coming back to their place. They will say that one part is broken and totally not mention the loose nut on the back wheel. Or they will make it sound like your car will explode if you turn it on and that they need to fix everything about it even though all it might need are it’s tires rotated.
11. As is the case in the weakest link information discrimination can easily be trumped by taste discrimination. Some people just don’t like others regardless of how much the other person may know or offer. The more information a person can know doesn’t matter at the time when they discriminate on the basis of taste.
12. Hispanic and elderly. In the case of the elderly it is taste based. The other contestants simply don’t want some old person around. In the case of the Hispanic it is information bias, the other contestants feel that the Hispanic player is inferior.
13. It shows that they lie about their features and it also shows what the population looks for in a partner. The average user will exaggerate their features so that they are above average in every category available, whether true or not.
14. They know that the other person is exaggerating as well. Also it gives them a bigger pool of people to choose from. If one rejects them because of their exaggeration, there might be someone on the pool who can overlook it.
1.The KKK came into existence after the civil war by a group of Confederate generals. But within the next decade it died out. The Klan grew again in 1915, and in the 1920s there were over eight million members. After the growth there was a shortage in members for the KKK when World War two was taking place. After the war, the Klan had another rise in membership, but was eventually broken down. The KKK was a group of people who would perform harmless pranks, but as time progressed, it became more harmful and therefore taken down by Stetson Kennedy.
Delete2.Stetson Kennedy played an undercover role as KKK member in order to expose the secrets of the hidden society. He would be trained the language of the Klan and then call the Superman radio station to allow the public people to decipher the codes. This striped the cover on the whole nationwide Ku Klux Klan.
3.Information asymmetry is where the information known about something between 2 or more people is unequal. In everyday life there is an information asymmetry between teachers and students, because the teachers have information on the subject they teach that the students don’t have, but that they need.
4.Information asymmetry can cause competitiveness because they (experts and individuals) are both trying to get the best out of situations. The experts try to get the better of the consumer but the individual now has the chance to know the truth because of the Internet to call out the expert on any scam.
5.The Internet now has unlimited information at the end of your fingertips and within seconds. If you want an answer to a question there are obscene amounts of search engines that are capable of producing answers to help you out of a scam.
6.People across the nation were caught with hidden partnerships, disguised debt, and the manipulating of energy markets. These people were lying about the statistics and financial situations to benefit illegally.
I like your responds, I think the were simply for everyone to understand it. Great work Anthony
DeleteI liked how you used (hopefully) in number 8, and how your questions had support. Good,
Delete1. Your timeline of the KKK was nice and detailed but ended with Stetson Kennedy, you just have to understand that he only helped distress this in the SOUTH.
Delete2. The definition of Stetson was good but more explanation is needed, include the fact that the kids that listened to superman spread the secrecy of the klan.
3. The teacher example is a good information asymmetry but especially if you include it as a private school or college teacher, then there is an actual economic part of the asymmetry.
4. I think you did a very well job at explaining the competitiveness of information asymmetries and especially since you included the decline because of the internet. Good Job.
5. You might want to be more specific than just to evade a scam but to see all options before paying.
7. When one person is more informed about a situation than another it already gives that knowledgeable person the upper hand. That scenario is already intimidating but when you place fear into the equation, it intensifies the situation. The fear will set in and you will not want to suffer a consequence for not agreeing with the professional.
ReplyDelete8. The authors lead me to believe that real estate workers try to milk the money out of uninformed clients by stating a strategically placed value on the house. This price seems s to be the best, but you don’t see the extra cash that goes into the real estate workers’ pockets. If this underlying factor were found out, the relationship between the two people would be harmed and less trusting.
9. The real estate agent places certain terms to describe houses but the terms that might sound halfway decent are just codes for simply saying “your neighbors’ houses are better”. But instead of just bluntly saying those terms they put nice sounding words on the front description as a hidden message.
10. Like previously stated in the book teachers have incentives to cheat for their students to pass State Tests. Students that pass the tests give the teacher a good rap and therefore giving the teacher an upgrade in position or maybe get a larger salary.
11. People can discriminate you for anything, the way you look, your physical background, or even your personality. Taste discrimination is the person not being able to get along with your type. Or if they think you are missing certain skills that are necessary to hold.
12. Hispanics suffer information-based discrimination while elderly players are victims of taste-based discrimination. The people showed to think that Hispanic players were not doing well even when statistically they were. On the other hand elderly players were always voted out by the other players simply because they didn’t want her on the show.
13. Men and women are both victims to lying on Internet dating sites. Men would lie about their height and income; meanwhile the girls are lying about their weight and their hair color. The men were even lying about the type of relationship they want because the long relationship is more appealing to women. The women did the exact opposite and typed short term.
14. Just to have a positive email back from a girl/guy that is interested in you. If the person is not as they describe themselves to be then just simply explain that your leaving.
#8- If you're a home buyer or interesting in purchasing a house it really is your job to go out and figure out what houses in that neighborhood usually go for. Also it is the home buyer's job to get an inspector in to find any faults with the house. If the buyer is just expecting to show up and haggle a price with a real estate agent without any reattach than it's their fault if they get ripped off. Buying a home is a serious investment and should not be taken lightly.
Delete#10- I like how you made the connection to the previous chapter. It helps to highlight that people's motivations are usually the same regardless of the situation.
#13- As a female I can say I want a guy into a relationship either that or I'll think he's only interested in one thing. Also I don't think I'd have an issue with a guy exaggerating his height by a couple of inches (maybe it's because I'm short). Also how can you know if a woman is lying about her hair color, haven't people heard of hair dye? I could be a blonde, say I'm a blonde, but by the time you meet me I may have decided to dye my hair brown.
#3- Your response made me ask the following questions. Do you think that information asymmetry is a relevant term when thinking about racism/sexism? Is it really the something as not being exposed or prepared or are there connections?
1. The KKK started as a small organization of former confederate soldiers, just after the Civil War. It soon grew into a multi-state organization, but then shrunk down again after many federal initiatives to extinguish the Klan. After a movie called The Birth of a Nation was made, which promoted the Klan, the KKK became powerful again, with over 8 million members, including 2 presidents. The second time they lost popularity was during WW2, when they were compared to Hitler and the Nazis. They became popular again in Post-War confusion, then took a complete decline after Stetson Kennedy went undercover in the clan, and exposed their rituals and secrets to the general public.
ReplyDelete2. Stetson Kennedy went undercover in the Klan, then had the idea to relay information to the media, where the Klan secrets would be portrayed as fiction, but still be exposed and imprinted in the minds of children.
3. Information asymmetries occur when, in a deal or transaction, one party has more information than the other. An example would be when one is buying a house; the realtor has more information, but will probably choose to give you less information, or fluff the information in order to make a sale.
4. Information asymmetries do create a competitive advantage, and the advantage is usually in favor of the party with more information. If you have more information, it is easier to skew or phrase this information in your own favor, without the other party’s knowledge.
5. The internet has made it simple to find the missing information a certain party might have in an information asymmetry. Now, if we want to find the best deal on a new computer, or on insurance, we can Google it, and find millions of sources, instead of relying on just one.
6. Information asymmetries allowed the companies to commit the scandals in the first place, by covering up where their money was going and why they were making the business transactions that they were, such as buying more stocks, selling stocks, and hiding partnerships.
7. Fear creates a sense of urgency or need (as opposed to want) when one is faced with an information asymmetry. For example, one of the Freakonomics authors was buying a house, and was told that he should buy now because the market was about to zoom, but then continued to sell him that he needed a realtor to sell his old house because the market was about to tank.
8. The authors offered a personal example to support this: when K. bought a new house in Stanford, the agent eventually informed him that the owners would sell for a reasonably low price. In the end, the owners lost a large chunk of money, but the realtor only lost 300$, then gained over 6,000$ because they made the sale. I suppose as information becomes more symmetrical, home owners might take more responsibility when selling their home, and negotiate more without the help of a realtor.
Your responses were long and came with support. YOu did a good job.
Delete1.) I like the background you gave on the KKK. Very thorough and informative.
Delete2.) I feel like you could have given a little more on Stetson Kennedy. He did a little more than what you stated.
3.) I really like the analogy of the realtor and the person looking at the house. I'm sure realtors do hide some information, because they don't like to tell the negative things about the house.
4.) I agree with you said.. People use information asymmetries to take advantage of people.
7.) Fear definitely creates a sense of urgency. Telling someone that they need to buy a house NOW is kinda crazy
I really like the information that you gave, but do you think that fear is the only thing that creates a sense of urgency? I think your responses, however, are extremely informative and thorough.
Delete9. Realtors use fluffy terms when describing a house, or the area surrounding a house. Of course, they aren’t going to say anything bad about the house, but the terms they use allow them to tell only half the truth. For example, they could say “great neighborhood!”, and a buyer would be thrilled; however, this says absolutely nothing about the house.
ReplyDelete10. Lawyers might be hired to review subject matter in a deal. In a deal, however, there is almost always an underlying incentive for either side.
11. It can be very difficult to make a decision about a person (or anything) when you have little information. In this case, taste-based discrimination would probably occur instead of information-based discrimination. For example, on the first day of school, you might write off a classmate as a bad student because they have piercings or tattoos. But after the midterm, when the get a 99%, you can make an informed decision or guess that they are a very good student.
12. The two groups that were most likely to be discriminated against were Hispanics and the elderly. Hispanics tended to be eliminated from the Weakest Link because of information-based discrimination, and the elderly were eliminated due to taste-based discrimination.
13. The men who participate in dating sites tend to be taller than the national average, make more money (compared to the average internet user), and the majority claimed to have “above average” or “very good” looks. Women tended to way about 20 lbs. less than the national average, and have blonde hair.
14. They might have the idea that they can catch someone’s attention with their “looks”, and then reel them in based on personality. In other words, when the second party finds out how interesting, smart, funny, etc. they are, they won’t care about looks any longer.
First of i want to say im sorry if im late, but i got the due dates confused, like last time. Only its the otehr way now. Oh well.
ReplyDelete1. THe Klu klux klan started after the civil war when 6 confederate soldiers dressed up in sheets and rode around on horses. It was initially very popular as a movement of angry white people against blacks, then it faded and was practically dead. HOwever, it got reviveed when books and ideas rose up, but was a different klan, with people using information to scare people, not actual violence.
2. Steson Kennedy infiltrated the clan and got their secret information, code, and hand gestures. He then made the Superman episodes on teh radio use that information in episodes, so that all the kids were doing what the Klan did.
3. Informational asymitries is when one group or person holds more information then the other, and uses that information to get an advantage. One example is when a home owner knows that a house is cheaper then its selling for, but uses the lack of information to get a higher deal.
4. THe informational assymitries can give adcantages to certian people because they can use their info to manipulate people for their benefiet.
5. The internet has given people more information, such as listing the differences between companies to point out the better deal, making all companies lower their price.
6. Informational assymitries created corporate scandals that allowed proffesionals to manipulate people with hidden parterships, hidden debts, and overcharging to make more money.
7. COmbining informational assymetries with fear allows people to manipulate fear of random violence to people. This makes them not abel to predict when or where violence to occour, yet still make them think it will happen, scaring tehm into doing things.
8. WHen real estate agents seem to change their story, or make everything strange. Like in the book, the guy who said you should buy now while the market is low, but saying the market won't allow him to sell alone. As people catch on to this, the relationship will change, making it more professional, and tenser.
9.If real estate agents describe the house with words like exelent, faboulous, they have nothing else to say, sugesting a lower teir house. IF they can actually describe teh house well, like granite or oak, then the house is better, and the price is higher.
10.When real estate agents work for other people, they are usually trying to get a price that satisfies the homeowner, but don't want to spend to much time for a higher selling price, because they only get an insignificant amount of money. If a real estate gaent is selling their own house, they will take the time to sell it for a higher price, because teh incentive is greater.
11. THe information someone has can make them discriminate, such as knowing other races taht are different from them makes them naturally dislike them. Age discrimination is when someone doesn't like to interact with a certian age, causeing them to aviod them and discriminate, while information discrimination is using someones race to assume a lack or excess amount of info, causing more discrimination.
12. Elderly and hispanic people are the most likely to get discriminated against. Elderly people are discriminated for their age, because people think they have a lack of skill due to their age. HIspanic people are discriminated due to their race, because people think they lack information.
13. People who use dating sites are usually younger, and tend to be white people who want to date otehr white people. THere are also more tall people and blonde people then normal, and most people are underweight.
14. People may lie about their appearence because if tehy speak the truth, less people would even give them a chance, so htey would never get to try. If the truth came out, they may keep dating anyways.
1. The general idea is good, but I think instead of there being a new klan, the one just grew popular again.
Delete2. Everything you said seems right to me, but you missed a little; rather than ending with kids doing everything the klan did, finish the explanation: once the klan members saw kids imitating them, they lost the security of the secrecy of the klan.
3. Your explanation for information asymmetries seems like a strict definition, an easier way to say this might be: when one side uses information against another.
10. You didn't really include another job where people have the same incentives as there customer. For example, Stock Brokers get a portion of their client's earnings so they want them to earn as much money as possible.
5. Your definition is great, I just think it wasn't all companies that had to lower their prices, just the ones with very high prices.
1. Six former confederate soldiers in Pulaski, Tennessee founded the KKK after the civil war. The Klan was extinguished by Washington DC interventions but its popularity rose in 1915 from D. W. Griffith’s film “The Birth of a Nation,” helping to spark its rebirth. The clan had 8 million members by 1920 including President Harding.
ReplyDelete2. Kennedy thought that the best way to take down a secret society was to make it public by giving out all of its passwords and most secret information. He went to producers of Superman and asked if they wanted to make episodes about the KKK. He explained roles of Klan officers, gave them their agenda, current passwords and giving out there gossip.
3. Information asymmetries are when one party has better information than another party. We encounter this in everyday life with the Internet. People gossiping, secrets and friendships are forms of this.
4. It does create a competitive advantage because if one party knows more information they could use that to their advantage and get ahead. It could be the difference between winning and losing.
5. Instead of being face-to-face with an expert in cars or a funeral director and him low-balling you, the Internet could be used to make sure you pay the right prices for things. The dealer or funeral director wants to sell their items for as much as possible but with the internet you can see what the dealer bought a car for and what the funeral director’s casket is really worth.
6. In these scandals they were able to use the Internet to fabricate billions of dollars in revenue to pump up their stock prices. One group let customers trade at their preferred prices and the other was in charge of hiding the management fees.
7. If someone knows more information than they are supposed to than that could cuse the person to be cautious to approaching the situation. An example could be a mechanic knowing that your breaks can last you a while but they make it seem like you need new ones very soon so you have a fear of not being able to stop one day so you get the brakes replaced.
8. Real-Estate Agents try to convince you that a offer is a good one and is very generous and basically saying you would be a fool to turn it down. If the client was to become aware of what was happening this could damage the relationship between the two.
9. Real Estate Agents try to use words that make the house seem more valuable than it really is. They talk about how it’s a good neighborhood, how the floor is made out of some special wood and etc.
10. They hire car salesman and retail agents. Their incentives don’t differ too much from the real estate agent. Their job is to sale and they don’t really care how they do it as long as it happens.
11. Taste-based is when a person will not work with certain people because there is something they don’t like about the person or just because. Information-based is when a person doesn’t work with someone because they don’t think they are capable of handling the work they would need them to do.
12. A young black man answering a lot of questions and voted off the discrimination would be the factor. If an elderly white woman doesn’t answer a single question and not voted off, it would be some type of discriminatory favoritism.
13. They report that they are at least an inch taller than they really are. Men were in line with their weight being compared with the national average but women were 20 pounds lower than the average.
14. For men they would be more likely to tell the truth because women more than men hate being lied to about looks, height, weight, etc. I would say a majority of men wouldn’t care about them lying as long as the woman looked decent enough for their standards.
3. I liked that you included the possibility of not just having more, but better information than others. This is an important distinction.
Delete4. In what ways could more or better information help one side come out on top?
7. This is an excellent example of a conflict of incentives and an information asymmetry.
10. I think these cases include a conflict of incentives, since the consumer wants to spend less but the employee wants them to spend more.
11. Information based discrimination is also about assumptions that people hold about others.
1. It came into existence when several white lawyers came together and decided to create a sort of “vigilante” club, only with the acts aimed at African Americans. Several factors were the dissolution of the group by the gov., the movie “The Birth of a Nation,” WWII, WWII ending, Stetson Kennedy and his books, and his use of public media.
ReplyDelete2. Kennedy infiltrated the Klan, and fed all the ridiculous sounding secret information to the radio station. This information was then run in the radio series on Superman, where Superman fought the clan. The secret words and such were then common knowledge, and children made it look ridiculous. Kennedy essentially made the Klan seem childish, and made everyone know how childish it seemed, meaning it was no longer feared.
3. Information asymmetries are differences regarding the same information taken from different sources. Information asymmetries we encounter are the words that come out of teachers’ mouths and what one finds when one researches the subjects. The differences here are generally minor, based on personal opinions of the teachers. Another asymmetry is the data one garners from the news. Depending on the news site, the information will be different. Also, anyone who sells anything for a living will attempt to swindle you out of cash by saying something is expensive, when their wares can be viewed on the interweb showing the real price.
4. Information asymmetries allow companies to charge more for a product costing less, because no one but the company knows the product’s actual worth.
5. The internet has evened the playing field by allowing the average person to find information from multiple sources on whatever they are looking for.
6. Companies hid info and lied to everyone. The lying kept going, because it was necessary to keep the previous lies “real.”
7. Information asymmetries and fear can lead to inefficient outcomes because the lies affect potential customers trust, and if a customer cannot trust, they will become afraid of every potential purchase. For example, if a funeral director is attempting to sell a casket to an emotionally fraught customer, and the customer finds out that the sales person is trying to gyp them, the person will then assume that any and every potential salesperson is trying to pull a fast one over on them to make a profit.
1. Attendance in the Klan also fluctuated over time, due to various factors. There were multiple resurgences and declines.
Delete3. Information asymmetries are more about who has how much information than about the source; one person typically has more information than another in an information asymmetry.
4. In what ways do companies obscure the true worth of a product?
6. Could you give examples of what information was hidden?
7. A more direct effect is that the consumer might be persuaded into accepting a bad offer due to their lack f information.
8. Realtors use words mainly associated with “expensive” housing, such as granite, oak, corian, and flawless. Clients don’t know that these things don’t define a “good” house. As more clients become aware though, trust between realtors and clients will fall immensely.
ReplyDelete9. They use words that don’t tell the whole truth, like renovated, to make a house seem better, and therefore worth a higher bid. Remember, the more money paid for a house, the more a realtor makes, since they get a percentage of the sales cost.
10. Salespeople, doctors, teachers, and union heads. The incentives differ completely. A salesperson exists to sell and make cash, while clients want an object. A doctor gets his pay based on merit and position, so taking clients that increase his potential merit and position are clients he will aim for; avoiding those who rely heavily on insurance or medicare and cade. Teachers get paid regardless of how well they teach, though test scores do figure in, which may lead to cheating. Union heads are at the top of the union food chain. So long as people are paying their union dues, union heads are raking in the cash.
11. Blackmail, plain and simple. The more you know about someone, the more power you have over them, just so long as they know next to nothing about you. As I like to say, everyone should owe you something. This gives you an edge over everyone. Discrimination based on taste is when someone avoids having interaction with someone else whom they dislike based on something(it depends from person to person). Information based discrimination is when information points to a person having poor or negative skills, and are discriminated thusly.
12. Hispanics and the elderly. Information based for Hispanics, and taste based for elderly. Hispanics are viewed as inefficient players, and elderly are not taken at face value.
13. People on dating sites lie a lot more in relative proportion to the total population.
14. The major motivation, I believe, would be the end of appearance based discrimination. Seeing as this will not happen, the lies will never stop. Also, human beings are inherently untruthful, feeling that lies put more weight behind our words. Is that last sentence true or false though? Human nature.
1. The KKK came into existence right after the U.S. Civil War ended and six Confederate soldiers though that it would be a good idea to form a group with their similar principals. The group first began with nearly harmless midnight pranks, but as the organization snowballed and got much bigger, they began to make it profitable and it grew more known, and with that, more violent. When people needed something to direct hate into, they turned to the Klan. Then, when people began to take note of the civil rights movement and began to recognize it, the membership of the Klan tanked, and is now almost only extremists.
ReplyDelete2. Stetson Kennedy was a man, 30 years old who resided in Atlanta and absolutely despised the KKK, so he formulated a plan to infiltrate their ranks and expose the whole organization for the monster that it was. To spread this information to the public, he broadcasted it, in code, to the listeners of his radio station.
3. When one person has the upper hand over someone else, information wise, that is. An example of this would be a car salesman, who, if he is doing his job correctly, knows a lot more about the car than you do, and can use this information to leverage or manipulate you into purchasing the vehicle.
4. Yes, you would be able to have the competitive advantage over someone because you know more than they do. You see this a lot with insider stock trading. Someone somewhere along the line knew more than someone else and this lead to them having the advantage of wither gaining more or losing less money.
5. The invention of the Internet helped to balance the asymmetry more because, to go with the car salesman anecdote, you can do your homework on the car to help you when you are negotiating price.
6. Enron, a company in the early 2000 used the Internet to manipulate energy markets, disguise debt, and hide partnerships, all of which ensured that the company knew more about this information that anyone else.
7. If you are fearful when someone seems to know more than you, it can lead to you making an even worse choice because they can use their wealth of information in combination with your fear and lack of information in comparison to yours to throw you into further fear and therefore have you get the better deal because they want to essentially “tap out”.
8. Real Estate agents use information asymmetry and buzz words to manipulate you into buying something that you wouldn’t necessarily purchase, if you knew all the information or they weren’t playing it up to be something it wasn’t.
9. They often tell you how great the neighborhood is, or how good the schools are in the area, or how little work the house needs, and they could be blowing hot air for all you know, but you don’t know because they are holding all the cards in that scenario.
10. Basically anyone who works on a commission will have the economic incentive to use buzz words to manipulate you into buying something more expensive because they receive more commission.
11. Information based discrimination is like when you don’t want to hire someone as a substitute because you see that they are a registered sex offender, and taste based incentive is not hiring someone as a lawyer because they look trashy.
12. The data from the Weakest Link shows that there are two types of people who get discriminated on the most, and they are the elderly and Hispanics, the Hispanics being Information discriminated because they are statistically better at the game, and the elderly being taste because people don’t want them to be around.
13. The data suggests that a majority of the people on dating sites lie about or exaggerate their characteristics to make themselves more “appealing”
14. I think that a good incentive to give would be to give someone a free months membership if, when they went on a date, they didn’t exaggerate their characteristics. To be voted on by the person they went on the date with.
1. Six former Confederate soldiers were annoyed about the outcome of the Civil war, they started to play some harmless pranks like wearing a sheet and riding through the countryside, they then grew to a national organization, after the Jim Crow laws and Plessy vs Ferguson the klan went largely dormant because of the large strides towards their goal. After The Birth of a Nation the Klan was completely revived, though during WWII the Klan receded again as the country unified in the war effort. Soon afterwards they returned before fading into the backdrop because of an information leak which compromised almost all their secrets.
ReplyDelete2. Stetson got the information about the klan into the world, with the increased chance of being caught during their schemes and the scandals about what they were actually doing, the amount of people trying to get into the klan decreased dramatically.
3. Information assymetry is where one side of an interaction is acting using information the other is not privy to, for example used gaming peripheral sales, when you go to buy it, you know the basic specs, but the store knows the condition of that peripheral and is selling it as being extremely cheap and you can save X dollars by buying used, however what you don't know is that the screen for that particular item is half-broken and some of the buttons are barely holding on.
4. Information assymetry is quite a useful tool as well, especially for salesmen, if a used car salesmen can present all the good information, some of which you knew some you didn't, presenting that as all the information while witholding all the bad information they can get more sales and therefore more commissions, which means a bigger paycheck.
5. Going back to my last example of a used car salesmen, they are at a large disadvantage in the age of information, if you know where to look you can find detailed information on the value of that used car, how damaged it is and somewhere you can get that same car in better condition for a lower price, though that doesn't stop the salesmen from trying to use any edge they can get.
1. The KKK was founded after the Civil War by six former Confederate soldiers in Pulaski, Tennessee. The six young men thought of themselves as friends who thought a like. Their activities were said to be harmless midnight pranks, at first, but they soon spread and turned into terroristic acts.
ReplyDelete2. Stetson Kennedy was a middle-aged man in Atlanta who despised the KKK and decided to go undercover in the KKK to further their downfall. He fed newly found information to the public using his radio station and code wording things during the show.
3. Information asymmetries happen when one person has more knowledge than another person on a subject or specific topic of discussion. A very common example of one would be a cars salesman and a pedestrian.
4. Information asymmetries could create a competitive advantage because if one person knows more about something then they might get a higher position or be able to abuse the information and black mail, and or anything that could help get them further ahead in destroying the competitor.
5. The Internet has decreased information asymmetries because anyone with access to it can learn more about anything at any given moment. People can also publicize secret or private information via the Internet.
6. The crimes committed by Enron in the early 2000s included hidden partnerships, disguised debt, and the manipulation of energy markets. Enron tried to get ahead of other companies by using information asymmetry propelled by the use of the Internet.
7. Fear and information asymmetry can lead to inefficient outcomes because people may fear that someone knows more than them about something/more than they should about something. The element of fear introduces a whole new level or being cautious, paranoid, because it is so unsettling to hear that you might not get what you deserve.
8. Real estate agents use clever wording to fool their clients into buying houses that may not be as good as they think. Things like saying "it's a really good neighborhood" or "the people who live here are great!" are used to distract from the fact that the house isn't that nice.
9. The real estate agents use special terms to make the place sound better than it actually is and they correlate to lower sales prices. They also use words to correlate to higher sales prices to really show that the house is nice. The general terms that are not even relevant to the quality of the house means there is not much to the house.
ReplyDelete10. Other experts that have economic incentives that use special terms/and stuff like that could be car salesmen, retailers and anyone who sells for commission.
11. If someone knows a lot about a certain subject or many subjects they might discriminate against people more because they know what too look for/what not too look for. Information based discrimination would be not giving someone a job because you know they're a felon, taste based discrimination would be not giving someone a job because you don't like their outfit
12. The voting data from the Weakest Link shows that Hispanics and the elderly are most likely to be discriminated against in that setting. Hispanics are being information based discriminated because they seem to know the most on the show and the elderly are being taste based discriminated because the other contestants just don't want them around.
13. The data says that many men and women lie about their characteristics to help attract others. They were generally more attractive than the 'average' person. Women would change their status to make their appearances a lot better while men lied more about their financial situation.
14. People could be motivated to lie about their characteristics to find a date easier, find someone who is rich, and generally have an easier time finding a partner. Even though people know the truth would come out if they met face-to-face they overlook it and generally think the other person won't mind.
@anthony for future postings on this blog or another blog, you should give examples of some of the terms that they use that have nothing to do with the house like "nice neighborhood" or something like that
ReplyDelete@nik what are some of the things that they tell people about cars in order for people to want to buy them? similarly to the houses,
@anthony for future postings on this blog or another blog, you should give examples of some of the terms that they use that have nothing to do with the house like "nice neighborhood" or something like that
ReplyDelete@nik what are some of the things that they tell people about cars in order for people to want to buy them? similarly to the houses,
1. It was formed by six former Confederates looking to instill fear, and grew to become a national organization with many tiers of operation. It died within ten years thanks to legal and military action, but resurged in 1915 with the help of D. W. Griffith’s ‘The Birth of a Nation.’ World War II caused another drop in the Klan’s presence, but soon after followed another revival. Finally, the work of Stetson Kennedy finished off the Klan.
ReplyDelete2. Kennedy put the Klan in the context of children’s entertainment, portraying them in a negative and silly light, as though they were a parody of a secret organization. By putting them on the radio program and making their secret information widely known in this context, it ridiculed their actions, and made its members feel stupid in the process.
3. Information asymmetries are cases in which we lack information that others do not. They may use this information against us, or can trade us for this information. Such cases include watching the weather to gain information, the trade being that the station makes money in the form of ads, or paying a computer specialist to repair your PC.
4. Information has value like any other commodity. Information can be used, traded, and bid on. An information asymmetry creates a situation in which another person has something you want, and they can choose to give it to you.
5. The Internet makes sharing and spreading information very easy and very fast. This can shift the asymmetry to a more balanced state and diminish its competitive advantage.
6. These scandals all involved people having information that nobody else had, and that they themselves should not have had, or hiding information intentionally.
7. Homeowners fear selling their house for too much or too little. This can cause them to put too much faith in the expertise of their real estate agent, who has somewhat different incentives. They may use the information asymmetry to sell the house for less than the maximum possible price.
8. Real estate agents selling their own homes typically wait longer and offer higher prices than when selling others’ homes. In this case, their incentives align. This reduction in information asymmetry, or at least awareness, could cause more tension or formality between the two.
9. Different terms signal that a seller is willing to sell for less than the indicated price, without alerting the seller to the fact that the buyer is being told. Phrases like ‘well maintained’ have a positive sound while also holding connotations of age or disrepair.
10. Stock brokers and business consultants are often hired by others. These people may have different incentives than their clients, but since both examples work on a longer term basis than real estate agents, they run the risk of being fired for doing a poor job.
11. If someone has information about others that makes some people seem better or worse in a certain context, they may use this information to inform their choices. Taste-based discrimination does not involve the use of information to discriminate, but simply the taste of the individual.
12. The elderly and Hispanics are consistently voted against in quantities not in line with their ability. Hispanics are subject to information-based discrimination; players believe them to be less skilled. The elderly are discriminated against by taste, simply because other players don’t want them in the game.
13. People on these sites claim to be highly above average, making more money than average and being better looking than average.
14. They might hope that their date will still be attracted in spite of the discrepancy.
@Aseel-I think your history of the KKK was very detailed, it gave a clear idea of what happened.
ReplyDelete@Chris Perry- Your response for #5 was very easy to understand, especially after reading your other response for #4. The use of a car salesmen made things a little easier to understand.
What is the coin casino? - Casinoowed
ReplyDeleteCoin slots are basically table games that are essentially video slots but instead of Some casino slots are like blackjack 코인카지노 먹튀 and video slots but without 1 answer · 4 votes: Do you play them or gamble with coin casino?
Every online casino has a different game