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Lecture Managerial economics (8e): Chapter 14 - Samuelson, Marks
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Chapter 14 - Asymmetric information and organizational design. Chapter 14 considers the implications of asymmetric information - the case in which an agent on one side of a transaction has superior information to his counterpart on the other side. Asymmetric information presents a barrier to efficient transactions whether in markets or within firms. In turn, a firm’s organizational design aims to minimize the costs posed by asymmetric information.
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