Information, Risk & Exclusion
Economist have actually asked questions such as, "Why are
there business organizations and not just individuals buying
and selling in markets?" Ronald Coase helped provide a good
answer, as explained by Michael Munger:
econlib.org/library/Columns/y2008/Mungerfirms.html
What happens when one side of the market has better
information about product quality than the other? Three
economists who answered that question received a Nobel Prize
in 2001:
nobelprize.org/nobel_prizes/economics/laureates/2001/public.html
Mazda destroys 4703 new cars, worth about $100 million, to protect its brand name:
http://online.wsj.com/public/article/SB120942873506551291.html?mod=blog
Here is an explanation of arbitrage, one of the several
topics discussed in this section:
www.riskglossary.com/link/arbitrage.htm
Insurance markets are strange markets, and give rise to a
phenomenon called moral hazard. This entry in The Concise
Encyclopedia of Economics explains a bit about this
market and the problems in it:
www.econlib.org/LIBRARY/Enc/Insurance.html
(I have not yet found an appropriate entry for this
topic.)
Tyler Cowen, who blogs at marginalrevolution.com,
explains public goods, externalities, and free riders in
The Concise Encyclopedia of Economics:
www.econlib.org/library/Enc/PublicGoodsandExternalities.html
When is bigger better? Here is an article that explains
three cases in which bigger is better, cases of economies of
scale, network economies, and economies of scope.
www.strategy-business.com/press/16635507/03402
These links were checked on July 5, 2008.
  
Copyright
Robert Schenk
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