A Nobel Prize for Asymmetric Information: The economic contributions of George Akerlof, Michael Spence and Joseph Stiglitz

  title={A Nobel Prize for Asymmetric Information: The economic contributions of George Akerlof, Michael Spence and Joseph Stiglitz},
  author={J. Barkley Rosser},
  journal={Review of Political Economy},
  pages={21 - 3}
  • J. B. Rosser
  • Published 1 January 2003
  • Economics
  • Review of Political Economy
This paper reviews the research related to the asymmetric information of George Akerlof, Michael Spence and Joseph Stiglitz, for which they jointly received the 2001 Nobel Prize in Economics. After recounting their overall careers, the history of the asymmetric information idea is presented and their key papers are discussed. This is followed by an examination of various applications of the concept, including in industrial organization and microeconomic dynamics, efficiency wage theories of… 
The New Palgrave Dictionary of Economics
George Akerlof is forever associated with his landmark 1970 paper, ‘The market for “lemons”’, which transformed the way economists approach markets where there is a difference between the transacting
Market Efficiency or Lack Thereof: A Critique and Rethinking on Corporate Governance
The untenable volatility of financial markets and fleeting nature of stock ownership on one side and corporate scandals, high-risk managerial whims and empire-building attitudes of corporate managers
Asymmetric information in loan contracts: A game-theoretic and statistical approach
This work analyzes for the first time loan big-data for millions of borrowers among various European countries, as collected by the European DataWarehouse, and proposes a new technique which may show itself useful if the availability of loan data will increase over time conserving some data sparsity.
Behavioral Macroeconomics and Macroeconomic Behavior
Think about Richard Scarry’s Cars and Trucks and Things That Go. Think about what that book would have looked like in sequential decades of the last century had Richard Scarry been alive in each of
This thesis addresses the mechanics of executive remuneration from an unorthodox perspective; the view presented through the lens of imperfect market pricing. Whilst many of the criticisms of
Selected Theories of the Business Cycle in Terms of “Econsochology”
The business cycle has been studied, rejected, restudied, and reaccepted during various periods of the past century, especially after the writings of Lord John Maynard Keynes in The General Theory of
The Effect of Asymmetric Information on Turkish Banking Sector and Credit Markets
Asymmetric information is a factor that decreases the efficiency of markets. The aim of the study is to expose whether asymmetric information causes problems in credit markets. The monthly data
Corwin-Schultz Bid-Ask Spread Estimator in the Brazilian Stock Market
This paper tests the validity of the Corwin-Schultz bid-ask spread estimator in the Brazilian stock market. The Corwin-Schultz estimator arises as an easy way to compute asymmetric information
A comparative review of the role of income inequality in economic crisis theories and its contribution to the financial crisis of 2007-2009
It is widely accepted that inequality has increased sharply recently in developed countries, but no consensus exists so far about the importance of inequality in the financial crisis of 2007-2009.


Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information
Economic theorists traditionally banish discussions of information to footnotes. Serious consideration of costs of communication, imperfect knowledge, and the like would, it is believed, complicate
Information and the Change in the Paradigm in Economics
The research for which George Akerlof, Mike Spence, and I are being recognized is part of a larger research program which, today, embraces hundred, perhaps thousands, of researchers around the world.
The Contributions of the Economics of Information to Twentieth Century Economics
In the field of economics, perhaps the most important break with the past—one that leaves open huge areas for future work—lies in the economics of information. It is now recognized that information
Coordinating Coordination Failures in Keynesian Models
This paper focuses on the importance of strategic complementarities in agents’ payoff functions as a basis for macroeconomic coordination failures. Strategic complementarities arise when the optimal
In this paper we investigate the macroeconomic equilibria of an economy in which credit contracts have both the adverse selection and incentive effects. The terms of credit contracts include both an
Keynesian, New Keynesian, and New Classical Economics
Much of the new theory of macro-economics that has been built upon micro-economic models of imperfect information leads to conclusions which are surprisingly close in spirit to Keynes' original
Bargains and Ripoffs: A Model of Monopolistically Competitive Price Dispersion
Bargains and Ripoffs: A Model of Monopolistically Competitive Price DispersionAuthor(s): Steven Salop and Joseph StiglitzSource: The Review of Economic Studies, Vol. 44, No. 3 (Oct., 1977), pp.
Monopolistic competition and optimum product diversity
Pettengill tests whether there is an excessive number of firms in a monopolistically competitive equilibrium by a device of considerable expository merit. He removes one firm, and redistributes the
Alternative Approaches to Analyzing Markets with Asymmetric Information: Reply
Shiro Yabushita's comment on "The Theory of Screening" (Stiglitz, 1975) raises some interesting questions which have arisen in a number of different contexts: How should one model markets with
Distinguished Lecture on Economics in Government: The Private Uses of Public Interests: Incentives and Institutions
[Joseph Stiglitz was a member of the Council of Economic Advisers from 1993-95, and chairman of the CEA from 1995 through February 1997.] Today, I want to share with you some of my thoughts about the