Markets work best when people can make good decisions. But good decisions depend on good information, and in real life, information is rarely shared equally. One person in a deal often knows more than the other. A seller usually knows more about a product than a buyer. A borrower usually knows more about their own plans than a lender. This simple gap in knowledge sits at the heart of a powerful idea in economics: #information_asymmetry. The theory of information asymmetry hel

The GameStop episode became one of the most widely discussed market events of the early 2020s. It was not only a story about one company’s share price. It was also a useful educational case about how #financial_markets can behave when #speculation, #short_selling, #social_media, #retail_investors, and #market_structure interact at high speed. From an economic perspective, the GameStop bubble showed that asset prices can move far away from company fundamentals when collective