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”
Those who value ‘justice' and ‘morality' tend to regard even a little ‘exaggerated’ expression as ‘false’ or ‘immoral.’ They also reject ‘rhetorical exaggeration' to emphasize expression. But ‘exaggeration' is only important for its ‘intention and purpose’ and is by no means ‘false’ in conveying meaning. ‘Rhetorical exaggeration’ is not a fabrication, but an emphasis. Rather, people want to prove their own integrity, and then push the ‘rhetorical exaggeration' to the one side as it is false and use that 'rhetorical exaggeration’ as a way to intimidate someone who used it is immoral. - Joseph’s "just my thoughts"