Brief overview of the theory of Nobel Prize laureates concerning incompleteness of information on the market

1. Nobel Prize 2001

2. On the market of light bulbs both
customer and salesman are unaware of
the quality of each single bulb

3. However, on the market of used cars only
salesman is aware of the true quality of his
product

4. Competition on this market leads to
adverse selection, which in perspective is
able to destroy the entire market

5. Nobel Prize 2001

6. According to the conception of market
signals salesman can give his customers
signals about quality of his product

7. Nobel Prize 2001 is a great example of
how economists find out the problem and
then deal with it