Freakonomics….contd. Excerpt 2

The authors of Freakonomics do uncover certain truths about transactions in today’s day and age and give us certain new points. One such I liked, and is the second excerpt from this book:

Chap 2: How Is the Ku Klux Klan Like a Group of Real Estate Agents – Page 16:

It is common for one party to a transaction to have better information than another party. In the parlance of economists, such a case is known as an information asymmetry. We accept as a verity of capitalism that someone (usually an expert) knows more than someone else (usually a consumer). But information symmetries everywhere have been gravely wounded by the Internet. Information is the currency of the Internet.

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