3 ms·

tl;dr information asymmetry. Didn't read the entire text, just skimmed through. I think fundamentally the reason behind info asymmetry in our day and age is th

by mojuba 2y ago

tl;dr information asymmetry. Didn't read the entire text, just skimmed through. I think fundamentally the reason behind info asymmetry in our day and age is that products and services have become so much more complex that there's simply no time to independently assess the qualities such as reliability, durability, and a myriad of other variables in each particular case. I think it's the complexity that is becoming our enemy number one, and too many variables when choosing a product as a consequence of that. Is the air conditioner too noisy? Does it require a WiFi connection and even a mobile app to function? People may omit some of these things even in their Amazon reviews. And then some of the insanely complex products like mobile phones are practically impossible to evaluate objectively. I once stumbled upon an article that explains why Android requires roughly 2x RAM and a slightly larger battery compared to an equivalent iPhone in order to have the same efficiency and performance, supported by some benchmarks (blame garbage collector I guess?). How many technical people or experts are even aware of this? My process of purchasing stuff comes down to two principles: (1) devices that Apple makes are generally OK to buy, they are less likely to disappoint; (2) for everything else: research, read reviews; the time spent on a product is proportionate to the price of the product.

carlosjobim 2y ago
Regarding smart phones, iPhones have had a bunch of features which they objectively do better, but these are never considered by reviewers or many buyers, who just look at paper specs and features. Just because these features are never articulated. Things such as user interface lag, long time usability, finger print sensor reliability. These were mayor problems with Android phones in the past (I have no idea how it is now), but since these features are very difficult to advertise, Apple focused their advertising in another direction. And as a consequence people like hackers, Europeans, and such believe that the public are only getting iPhones because it's fashion and a "status symbol".
rstuart4133 2y ago
For me it went a bit deeper. Yes, there is always information asymmetry, but there is a world of difference between that and allowing outright lying and deception. In practice consumers are powerless against outright lying, so if Governments and organisations don't actively intervene it runs rampant. Apparently does that in most organisations. The article gave examples of CEO's that didn't allow it - Gordon More and Eric Schmidt. He claimed both ran very successful organisations as a result. That reflects what I've seen in Australia. Unlike the USA, we have very strong local consumer protection laws. If a firm lies on the box, like saying a plan is unlimited when it is not, and a government will come knocking on their door. But in web market places like ebay the government can't control overseas sellers. Lying about the size of USB Flash drives on Ebay in particular became rampant. While Ebay is much cheaper than local brick and mortar sellers for just about everything, in the end I abandoned Ebay for USB Flash and other items where fraud was rampant. So did everyone else. The market for those things on EBay just collapsed - to the detriment of everyone - buyers and sellers alike. In the end EBay stepped in by siding with the consumer far more often when disputes arose, and those products returned. The USA worships markets. Markets only work well when the buyer and seller are both well informed. Yet, the USA doesn't enforce that. To outsiders, it's weird.

by mojuba 2y ago

carlosjobim 2y ago

Regarding smart phones, iPhones have had a bunch of features which they objectively do better, but these are never considered by reviewers or many buyers, who just look at paper specs and features. Just because these features are never articulated. Things such as user interface lag, long time usability, finger print sensor reliability. These were mayor problems with Android phones in the past (I have no idea how it is now), but since these features are very difficult to advertise, Apple focused their advertising in another direction. And as a consequence people like hackers, Europeans, and such believe that the public are only getting iPhones because it's fashion and a "status symbol".

rstuart4133 2y ago

For me it went a bit deeper. Yes, there is always information asymmetry, but there is a world of difference between that and allowing outright lying and deception. In practice consumers are powerless against outright lying, so if Governments and organisations don't actively intervene it runs rampant. Apparently does that in most organisations. The article gave examples of CEO's that didn't allow it - Gordon More and Eric Schmidt. He claimed both ran very successful organisations as a result. That reflects what I've seen in Australia. Unlike the USA, we have very strong local consumer protection laws. If a firm lies on the box, like saying a plan is unlimited when it is not, and a government will come knocking on their door. But in web market places like ebay the government can't control overseas sellers. Lying about the size of USB Flash drives on Ebay in particular became rampant. While Ebay is much cheaper than local brick and mortar sellers for just about everything, in the end I abandoned Ebay for USB Flash and other items where fraud was rampant. So did everyone else. The market for those things on EBay just collapsed - to the detriment of everyone - buyers and sellers alike. In the end EBay stepped in by siding with the consumer far more often when disputes arose, and those products returned. The USA worships markets. Markets only work well when the buyer and seller are both well informed. Yet, the USA doesn't enforce that. To outsiders, it's weird.