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Nobel Prize winner: Stgler/Akerlof (George Stigler (1911-1991) (Professor…
Nobel Prize winner: Stgler/Akerlof
George Stigler (1911-1991)
Professor University of Columbia
Works: The Economics of Information (JPE, 1961)
Studied at University of Chicago
Information and regulation
George Akerlof (1940-present)
Prof. University of California
Works:
The Market for Lemons (QJE, 1970)
: Efficiency Wage Models of the Labor Market (1986)
BA. Yale, Ph.D. MIT
Asymmetric information (Efficiency wage theory)
Nobel Prize in 1982 -
Stigler:
"for his seminal studies of industrial structures, functioning of
markets and causes and effects of public regulation”
Nobel Prize in 2001 –
Akerlof
(joint with Spence and Stiglitz): “for their analyses of markets with asymmetric information”
1. Information
Inconsistencies real world and competitive economic model:
--> Market failure or irrational behavior
Stigler
Information is an economic good --> Economics of information
Costly information acquisition as explanation!
“Perfect information about information” to guarantee competitive model to work.
Strong defender of competitive model
2. Regulation
No government regulation desirable
--> Not even to limit monopoly power or guarantee consumer
safety!
Stigler
Regulation benefits companies under government control
Government failure
Stigler: Info/ regulation
Relation to Smith:
Basic theory of markets and price formation, limited
government intervention
Stigler added role of information, as another economic good
Relation to Chicago school:
Minimal government intervention