Tag: Signaling Theory
In game theory, a Schelling point describes an intuitive focal solution people gravitate towards without direct communication. Named after its progenitor, economist Thomas Schelling, its reach extends to realms like negotiations, economics, and international affairs, driven by common societal frameworks and references.
Information asymmetry is when one group knows more than another during a deal or interaction, which can tilt the balance of power. This can lead to unfair transactions, market issues, and power imbalances in areas such as finance, health, politics, and education, impacting decision-making and overall fairness.