Trust Me, I'm an Economist II

"Undercover Economist" Tim Harford shows why you can't buy a decent used car, or at least why he can't.

Category:

People & Blogs

Tags:

• Harford
• Economist
• Car
• Undercover

[TheScumbug]

As if he will sell a lemon with a cam stuck in his face...

So if your buying a used motor take a mate with a cam and pretend to do a tv show..

Jobs a good un.

[abrilata85]

i love the book!

[pigsnoutman]

@bonfirejovi Which video were you watching? There was nothing about government anywhere at anypoint in that video.

[bonfirejovi]

What a stupid video. If anyone couldn't identify that information in most cases is asymmetric before watching is video then they need some serious help. This has been the case for a very long time and yet the market, for all it's faults, has proved to be far more efficient than the government. There are items to help information become more symmetrical such as consumer advocates and fraud laws. Economists don't seem to realise it is unhelpful to replace a market failure with a government failure

[david0aloha]

@joebloggsgogglebox

I think a big part of it stems from the fact that people learn better when there are examples, real world situations, things they can form connections to and relate to. People's brains are wired to make connections by association, mental imagery, etc. so when a topic like asymmetric information is presented like this, people are more likely to pay attention and retain it.

[joebloggsgogglebox]

@david0aloha Well, the description under the video says: "Tim Harford shows why you can't buy a decent used car", and in the narration of the video he does seem to be doing exactly that, which frankly seems a bit patronizing. If he is just trying to explain what "asymmetric information" means then fine, but he could have done it in a single sentence.

[david0aloha]

@joebloggsgogglebox

No, he's supporting the fact that Tim is analyzing an element of asymmetric information in a context that most of us will face in our lifetimes in which it is a major purchase decision. Besides, Tim wasn't saying "salesmen will rip you off", he was saying that you don't know, and that's the problem. For all you know he's been there 20 years and thrives on return customers (finding that out can lessen the distrust from asymmetric information).

[david0aloha]

I don't think you can define it in black and white terms though, There's a lot of context. Say that you're a car enthusiast who recognizes the condition of the car immediately by looking under the hood - you could still be more trusting one day because you're in a good mood, or be unwilling to trust, regardless of what you know or do not know on another day, because you were ripped off earlier in the day and it still lingers in your mind.

You may indeed find yourself in a trusting mood.

[joebloggsgogglebox]

@manhammmer Are you trying to tell me that before watching this video you were unaware of the fact that salesmen will try to rip you off because they know more about the product than you? Or is it the way that it is presented and the language used that makes you feel you are learning something new?

[manhammmer]

@joebloggsgogglebox While that may be true by your opinion joe, it is still relevant and necessary for those of us who do not teach at at one of the most renowned econometrics institutions in the world, whatever vague reference to status that is supposed to be.