Information asymmetry happens when buyers and sellers have different levels of information, leading to adverse selection in the market. Adverse selection occurs when one party, either the buyer or the seller, has hidden information about the product and makes buying or selling decisions based on that information. For example, in the used car market, buyers cannot know everything about the cars and cannot fully trust them. Because of this, they often try to buy used cars at lower prices to evaluate their quality. To make buyers feel more confident, sellers might promise to repair the car free of charge if it breaks within a year after purchase, protecting themselves against adverse selection. A successful transaction depends on strategies that align with the market’s specific characteristics. - Joseph’s “just my thoughts”
The case of solving complex problems with surprising ideas and new perspectives is exemplified by Alexander the Great ’s ‘ Gordian Knot ’ or the ‘ Egg of Columbus .’ If you have tried using the same perspective and approach but have not achieved your goal, you must tackle it from a completely different perspective and method. Nevertheless, the reason we continue to cling to our previous perspective and direction is that we focus too much on the method. If you get caught up in the method, you lose sight of your purpose. If you lose your purpose, you may end up trying the same method again. If the will is strong and misguided, it is possible to repeat this. - Joseph’s “just my thoughts”