Tag: Economic Efficiency
Opportunity cost quantifies the trade-off between options, serving as a cornerstone for strategic decision-making by measuring the value of the next best alternative.
Adverse selection happens when one party in a deal knows more than the other, leading to unfair outcomes. This can be a big issue in areas like insurance, loans, and used car sales. While there are strategies to manage it, unchecked adverse selection can cause market problems and privacy concerns.