Asymmetric information and used cars

Note: This is post #64 in a weekly video series on basic microeconomics. Adverse selection occurs when an offer conveys negative information about what is being offered. For example, in the market for used cars, sellers have more information about the car’s quality than buyers. Continue Reading...

The tragedy of the commons

Note: This is post #63 in a weekly video series on basic microeconomics. Common resources are nonexcludable but rival, says Alex Tabarrok in this video by Marginal Revolution University. For instance, no one can be excluded from fishing for tuna, but they are rival — for every tuna caught, there is one less for everyone else. Continue Reading...

Why entrepreneurs want to turn public goods into club goods

Note: This is post #62 in a weekly video series on basic microeconomics. Club goods are goods that are nonrival and excludable, says economist Alex Tabarrok. For instance, HBO is a club good, as you need to pay a monthly fee to access HBO (excludable) but more viewers does not add to costs (nonrival). Continue Reading...

Do unions raise wages?

Note: This is post #59 in a weekly video series on basic microeconomics. Do unions raise wages for workers as a whole? If not, can unions raise the wages of some workers? Continue Reading...