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 conversation itself is value-neutral. Good and bad conversations are determined by circumstances and methods. Claiming that having many conversations is inherently good is misleading, as not all conversations are beneficial. Sometimes, silence can convey more than words. Dialogue exchanges information, communicates emotions, and conveys intentions and stances. However, a fruitful conversation can occur only when there is an implicitly respected distance between conversation partners, allowing both to express their intentions and thoughts appropriately within that distance. The reaction to these revealed intentions and thoughts ultimately decides whether to continue the conversation, shift to another topic, or maintain a stagnant relationship. - Joseph’s “just my thoughts”