Price of Information Asymmetry in Labor Market: Competitive Equilibrium Wage and Total Surplus Loss

DOI

10.2991/978-94-6463-570-6_58How to use a DOI?

Keywords

Labor Market; Total Surplus; Competitive Equilibrium; Price of Information Asymmetry (PoIA)

Abstract

Information asymmetry about workers’ productivity between workers and employers usually exists and produces total surplus loss in labor market. A new concept — the price of information asymmetry (PoIA) — is proposed to measure the total surplus loss caused by information asymmetry in labor market. Comparative static analysis of the PoIA with respect to key coefficients brings forth a wealth of (but may conflicting) measures to reduce the total surplus loss in labor market.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Heyin Hou
PY  - 2024
DA  - 2024/11/22
TI  - Price of Information Asymmetry in Labor Market: Competitive Equilibrium Wage and Total Surplus Loss
BT  - Proceedings of the 2024 5th International Conference on Management Science and Engineering Management (ICMSEM 2024)
PB  - Atlantis Press
SP  - 586
EP  - 594
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-570-6_58
DO  - 10.2991/978-94-6463-570-6_58
ID  - Hou2024
ER  -