Comments on: Freakonomics, Information Asymmetry, and the Internet http://blog.wesabe.com/2006/09/28/freakonomics-information-asymmetry-and-the-internet/ The Wesabe blog Sat, 31 Jul 2010 18:27:05 +0000 hourly 1 http://wordpress.com/ By: bill evans http://blog.wesabe.com/2006/09/28/freakonomics-information-asymmetry-and-the-internet/#comment-3621 bill evans Thu, 18 Oct 2007 21:18:26 +0000 http://www.wesabe.com/blog/index.php/2006/09/28/freakonomics-information-asymmetry-and-the-internet/#comment-3621 I agree that information asymmetry is still very common despite the proliferation of the Internet and I believe Levitt does in Freakonomics too. In it he says "the Internet has accomplished what no consumer advocate could: it has vastly shrunk the gap between the experts and the public." Today that is undeniable. You say you "don't buy it". You don't think the Internet has dealt a mortal blow to information asymmetry. Levitt doesn't either. On the very next page of the paragraphs you have quoted, Levitt says "The Internet, powerful as it is, has hardly slain the beast that is information asymmetry." He then gives the examples of corporate scandals involving the "sins of information." It's important not to take things out of context. I agree that information asymmetry is still very common despite the proliferation of the Internet and I believe Levitt does in Freakonomics too. In it he says “the Internet has accomplished what no consumer advocate could: it has vastly shrunk the gap between the experts and the public.” Today that is undeniable. You say you “don’t buy it”. You don’t think the Internet has dealt a mortal blow to information asymmetry. Levitt doesn’t either. On the very next page of the paragraphs you have quoted, Levitt says “The Internet, powerful as it is, has hardly slain the beast that is information asymmetry.” He then gives the examples of corporate scandals involving the “sins of information.” It’s important not to take things out of context.

]]> By: Sanjeev Sisodiya http://blog.wesabe.com/2006/09/28/freakonomics-information-asymmetry-and-the-internet/#comment-3620 Sanjeev Sisodiya Wed, 08 Nov 2006 23:23:39 +0000 http://www.wesabe.com/blog/index.php/2006/09/28/freakonomics-information-asymmetry-and-the-internet/#comment-3620 I almost jumped out of my chair as I read your post. A couple of frustrating experiences shopping for services were the genesis for the idea of a web service which brought transparency to services prices. As you clearly identified one of the big issues is asymmetric access to pricing information. While there are many online services which provide price comparison for products, it's incredibly hard to discover, broadly, what a reasonalbe price for a service should be in a given locality. There are really two groups who have access to this pricing information. The service providers themselves, and the consumers who pay for these services. Aggregating that data is an essential first step on the road to more financially empowered users. I've started the process at http://www.pricemarks.com. I'd love to hear what you think of it. I almost jumped out of my chair as I read your post. A couple of frustrating experiences shopping for services were the genesis for the idea of a web service which brought transparency to services prices.

As you clearly identified one of the big issues is asymmetric access to pricing information. While there are many online services which provide price comparison for products, it’s incredibly hard to discover, broadly, what a reasonalbe price for a service should be in a given locality.

There are really two groups who have access to this pricing information. The service providers themselves, and the consumers who pay for these services. Aggregating that data is an essential first step on the road to more financially empowered users.

I’ve started the process at http://www.pricemarks.com. I’d love to hear what you think of it.

]]> By: Steven Alexander http://blog.wesabe.com/2006/09/28/freakonomics-information-asymmetry-and-the-internet/#comment-3619 Steven Alexander Sun, 15 Oct 2006 08:21:18 +0000 http://www.wesabe.com/blog/index.php/2006/09/28/freakonomics-information-asymmetry-and-the-internet/#comment-3619 I envision a web tool allowing consumers to plan counter-tactics against grocery stores by collecting price data over time and, e.g., suggesting how many packages of Oat Loops to buy now that Oat Loops (are|are not) on sale. Is this something wesabe.com may be up for? (Compare the mention of me from about 1993 at .) I envision a web tool allowing consumers to plan counter-tactics against grocery stores by collecting price data over time and, e.g., suggesting how many packages of Oat Loops to buy now that Oat Loops (are|are not) on sale.

Is this something wesabe.com may be up for?

(Compare the mention of me from about 1993 at .)

]]> By: Marc Hedlund http://blog.wesabe.com/2006/09/28/freakonomics-information-asymmetry-and-the-internet/#comment-3618 Marc Hedlund Mon, 02 Oct 2006 22:39:36 +0000 http://www.wesabe.com/blog/index.php/2006/09/28/freakonomics-information-asymmetry-and-the-internet/#comment-3618 Thanks, Henry. I should have mentioned in the post: I Am Not an Economist (IANAE) and may be misuing the term information asymmetry. I still think, though, that the seller selection problem I describe is real. Any economists want to correct my usage? Or is that not needed? Thanks, Henry.

I should have mentioned in the post: I Am Not an Economist (IANAE) and may be misuing the term information asymmetry. I still think, though, that the seller selection problem I describe is real.

Any economists want to correct my usage? Or is that not needed?

]]> By: henry http://blog.wesabe.com/2006/09/28/freakonomics-information-asymmetry-and-the-internet/#comment-3617 henry Mon, 02 Oct 2006 14:10:46 +0000 http://www.wesabe.com/blog/index.php/2006/09/28/freakonomics-information-asymmetry-and-the-internet/#comment-3617 You are so right. We just aren't there yet with reliable comparision and information shopping. You are so right. We just aren’t there yet with reliable comparision and information shopping.

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