By Kondratev A.S.
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Akerlof (1970) has also considered the cost of dishonesty in “lemons” market. He states: “Dishonesty in business is a serious problem in underdeveloped countries. ” Thus, when the customer is equally informed he/she will buy high-quality products (of course, depending on his/her economic condition). However, the market consists of informed as well as uninformed customers. Uninformed customers may buy low-quality or high-quality products. But, in lemon circumstances high-quality product manufacturers may signal the product by high pricing.
Uncertainty) is sufficiently high. 3 shows the symmetric and asymmetric combinatorial market distribution on approximate assumptions. The market in developing nations consist of both low-quality and high-quality products. The prevalence of low-quality products is significant there. This can be attributed to the presence of the large extent of information asymmetry and the small extent of information symmetry. In developing nations, the larger part of the customer population is informationally asymmetric.
Union of A and B (A [ B): The set of elements that belong to A or B (or both). When two events are independent, the probability of both occurs (Fig. 2): P(A or B) ¼ P(A) þ P(B) À P(A) Â P(B): If we flip a coin and roll a six-sided die, what is the probability that the coin comes up tails or the die comes up 3? Again the probability of a tail is 1/2, and the probability of the die coming up 3 is 1/6. P (coin comes up tails or die comes up 3) = 1/2 + 1/6 – (1/2 Â 1/6) = 7/12. Intersection of A and B (A \ B): The set of elements that belong to both A and B.
2-Local subgroups of finite groups by Kondratev A.S.