The Problem of Asymmetric Information
grogork89200z What is the problem of asymmetric information? Why is it so important to understand this problem? This video is great! https://www.youtube.com/watch?v=sXPXpJ5vMnU
Many police officer positions require the applicant to have a college degree even though the tasks of a police officer rarely call upon college course material. Why don't police departments increase their applicant pool by dropping this requirement?
As you answer this question think back to last week and the problem of Type 1 and 2 errors and the human tendency to be risk-averse.
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