Introducing Game Theory: A Graphic Guide (Graphic Guides)

by Ivan Pastine

in the car insurance market a driver has private information about their own driving habits. The insurance company has incomplete information: it doesn’t know the driver’s habits, so it doesn’t know the payoffs it will get from selling them insurance.

Except that we have apps now which DO track and give them that information...

Efficiency wages pose a problem, however, in that all firms are faced with the same incentive to offer higher wages to induce efficiency.