This value is not set but instead is modeled as a probability distribution in a Bayesian game.
In a 2001 paper contrasting this value with "prices," Greg Mankiw (MAN-"cue") and Ricardo Reis ("race") proposed that its "stickiness" could be used to construct an alternative to the Phillips curve. This value is not set but instead is modeled as a probability distribution in a Bayesian game. Sets named after this value are used to indicate nodes that an agent can't distinguish between in game theory. Michael Spence contributed to the understanding of this value by introducing the concept of signaling, which, along with screening, is a method of transmitting it. George Akerlof used the example of a used-car salesman to illustrate situations in which disparities in this value cause imbalances in "The Market for Lemons." For 10 points, what value can be "asymmetric" in situations like moral hazard?
In a 2001 paper contrasting this value with "prices," Greg Mankiw (MAN-"cue") and Ricardo Reis ("race") proposed that its "stickiness" could be used to construct an alternative to the Phillips curve.
information [accept information stickiness or information asymmetry]