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 Japan Airlines that no one thought would ever recover. It was the biggest corporate bankruptcy in Japan. When Kyocera Group Chairman Emeritus Kazuo Inamori took the helm to save Japan Airlines, his priority was to reform the mindset of the employees. Whenever he could, he gathered all employees for lectures on mental reform, and executives were required to attend a separate lecture on mental reform given by Kazuo Inamori every Thursday without exception. The employees' frustration was palpable, but the company returned to the stock market after two years and eight months. There is no magic in running a company. Attitude and mindset are everything. - Joseph's "just my thoughts"