2 ms·
We’re all irrational. We all lack access to complete information about any market we’re acting in. Entire business models have been created to take advantage o
by stouset 8y ago
We’re all irrational. We all lack access to complete information about any market we’re acting in.
Entire business models have been created to take advantage of and even maximize this type of information asymmetry. Legislation exists to curb the most egregious offenders.
You can argue whether or not this specific case is egregious enough to warrant regulation. But implying we’re all fully rational actors who can make perfect (or even good) decisions in times of great distress and who don’t ever need sort of safety rail to protect us from our own ignorance, urgency, or rashness is just arguing in bad faith.
- rayiner 8y agoInformation asymmetry results in market failures, and can justify regulation. But the Obama payday regulations aren’t directed to information asymmetry. They do not, for example, require certain transparency measures. Instead, what they do is place limits on who lenders and lend to.
- dragonwriter 8y agoYou seem to assume that there are transparency measures that would adequately resolve an information assymetry (which doesn't just exist in possession of information but practical capacity to apply it), and further in making a claim about what the regs are directed at that the regulators agree with you in that belief. Neither point is obvious.