Slow down on the “economists this, economists that” talk. You have highlighted an information asymmetry that economics has been aware of for years. When an unsophisticated party enters negotiations with a sophisticated party they will always come out below, entirely because they do not have the education and background understanding of the product the sophisticated party has. Information is not just the physical terms of the contract, it is the individual’s ability to understand these terms.
Whilst government policy economists spit out a regulation and move on with (usually) poor follow up, hundreds of academics will be able to point the obvious flaws in these policies instantly.
You raised a great point that does need to be addressed by policy makers, but I feel you were a little heavy-handed on the dismal science.
Slow down on the “economists this, economists that” talk. You have highlighted an information asymmetry that economics has been aware of for years. When an unsophisticated party enters negotiations with a sophisticated party they will always come out below, entirely because they do not have the education and background understanding of the product the sophisticated party has. Information is not just the physical terms of the contract, it is the individual’s ability to understand these terms.
Whilst government policy economists spit out a regulation and move on with (usually) poor follow up, hundreds of academics will be able to point the obvious flaws in these policies instantly.
You raised a great point that does need to be addressed by policy makers, but I feel you were a little heavy-handed on the dismal science.
-A