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Hidden Attributes
Hidden attributes are a form of asymmetric information that can lead to market failure. They refer to characteristics of a product, service, or individual that are known to one party in an exchange but are not observable to the other party. For instance, in the used car market, the seller is aware of the vehicle's true quality, an attribute that is hidden from the potential buyer. This information imbalance is the direct cause of adverse selection.
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Economics
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The Economy 2.0 Microeconomics @ CORE Econ
CORE Econ
Social Science
Empirical Science
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Introduction to Microeconomics Course
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Learn After
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