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===Asymmetric Information===
===Asymmetric Information===
Asymmetric information is where one party in a transaction has more complete or more accurate information than another party. This is significant because an important assumption of competitive free market theory is often that all who participate in the market have perfect information about everything affecting their decisions.<ref>Perloff, Jeffrey M. ''Microeconomics''. 2004. Pearson Addison Wesley. ISBN 978-0321160737</ref> Classic examples of asymmetric information include the used car market, where sellers often have better information about the quality of the car than buyers, and the [[health insurance]] industry, where buyers of insurance have better information about their health and their risk factors than insurance companies do. Proponents of health care reform point to this type of market failure as an important underlying cause for rising insurance costs that needs to be addressed.<ref>"The Economic Case for Health Care Reform." Retreived February 12, 2011. http://www.whitehouse.gov/administration/eop/cea/TheEconomicCaseforHealthCareReform/</ref>
Asymmetric information is where one party in a transaction has more complete or more accurate information than another party. This is significant because an important assumption of competitive free market theory is often that all who participate in the market have perfect information about everything affecting their decisions.<ref>Perloff, Jeffrey M. ''Microeconomics''. 2004. Pearson Addison Wesley. ISBN 978-0321160737</ref> Classic examples of asymmetric information include the used car market, where sellers often have better information about the quality of the car than buyers, and the [[health insurance]] industry, where buyers of insurance have better information about their health and their risk factors than insurance companies do. Proponents of health care reform point to this type of market failure as an important underlying cause for rising insurance costs that needs to be addressed.<ref>"The Economic Case for Health Care Reform." Retreived February 12, 2011. https://www.whitehouse.gov/administration/eop/cea/TheEconomicCaseforHealthCareReform/</ref>
===Common-pool Resources and Public Goods===
===Common-pool Resources and Public Goods===