Microeconomics Archives

Economics / Microeconomics / Terms and Concepts

Rational Preferences

An agent has rational preferences if her preferences fulfill two properties, that they are complete and that they are also transitive.

Economics / Microeconomics / Terms and Concepts

Normal good, inferior good, Giffen good

Usually, goods are categorized into three different groups, which are: normal goods, inferior goods and Giffen goods.

Photo by Javier Allegue Barros on Unsplash

Economics / Microeconomics

Opportunity Cost

Opportunity cost, to put it as simply as possible, is the price you have to pay in order to obtain something else.

Economics / Microeconomics

Information asymmetry: The battle for data

One key element that affects how people behave in different situations is the information they have about the issue. But, generally speaking, people do not possess same levels of information. This difference in the amount of information between two parties is known as information asymmetry.

Category: Microeconomics

Rational Preferences

Normal good, inferior good, Giffen good

Opportunity Cost

Information asymmetry: The battle for data