September 17, 2007
Guardian Leader Shocker!
No, really, a terrible shock this is. The Guardian leader on Northern Rock. Gobsmacking in fact.
Asymmetric information is common. Supermarkets know more about their food than shoppers; employers cannot be sure prospective recruits have all those qualifications. But most markets try to correct that imbalance. Consumers should be protected by the Food Standards Agency, while licensed bodies certify exam results. There is also the power of reputation; questionable goods are swiftly recalled by any supermarket that values its good name. Whatever forms it takes, assurance is vital to buyers. Without it, markets may seize up.
Now all we need to do is get a few of the columnists to read it. Most especially that part about the way in which businesses try to protect their reputations: that being the greatest protection that consumers have over the quality of the goods on offer.
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That first comment is spot on, as well.
Posted by: Mark Wadsworth | Sep 17, 2007 9:56:47 AM
I think this piece in The Times today is also good on insights, albeit for different reasons:
"An American crisis that could harm an awful lot of reputations here — including Gordon’s"
Posted by: Bob B | Sep 17, 2007 10:56:17 AM
Exactly what reputation has the nurdGaia got? I suppose only that if you want a job sucking at the public teat, you've got to read their adverts.
Posted by: dearieme | Sep 17, 2007 2:53:58 PM