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 plum contains a poison called “amygdalin.” This poison is found not only in plums but also in other drupes. The poison “amygdalin” is a combination of two glucose molecules. When these glucose molecules are divided, they turn into “prunasin,” which is more prevalent in other plants. When an insect attacks a plant, it breaks the bond with glucose, turning it into “mandelonitrile” and quickly converting it into “benzaldehyde” and “hydrocyanic acid (HCN)” once more. HCN is a respiratory poison, and benzaldehyde is a unique fragrance component of cherries, bitter almonds, and pistachios. This dangerous ingredient is also present in green tea, but it appears only in small amounts, so it does not cause any problems when consumed. It is an ironic phenomenon in which by-products essential for survival kill other living beings. - Joseph’s “just my thoughts”