396
MACROECONOMICS
SUMMARY
Financial products are contracts that allow investors to del-
egate the management of their assets to others.
Delegation of assets in financial markets is circumscribed by
the prevalence of asymmetric information.
Asymmetric information is prevalent when buyers and sellers
are not equally well informed about either the characteris-
tics of investment projects and goods and services for sale in
the marketplace, or about the effort expended to efficiently
utilize delegated resources.
Eliciting information can be a public good since once the
information is known by an agent, other agents can access it
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