Information asymmetry can contribute to economic inequality by creating power imbalances. Those with more information can exploit those with less information, leading to unfair outcomes. For example, in the real estate market, agents might have more information about property values and can take advantage of buyers. Similarly, employers might have more information about job market conditions than employees, allowing them to offer lower wages. This can lead to economic inequality.
Author Steven Levitt, working with journalist Stephen Dubner, shows how economic theories can be use...
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