I think we've looked at this before, but this is the one with the information gap in asymmetric information. But it includes all the stuff about sort of public goods etc.market failure. If I find the ones that I've got. And don't let me just move. Did you remember that one? Do you remember this paper or not? No. Okay, triinformation Yeah. So where the key member information is like not the same. So you have more information or I have more information. So this is like the information gap, where there's a gap between like the information you know that you hold and I hold. And therefore we make possibly irrational irrational decisions. Rich more than might be Sumon. We've definitely done that one. They're rational irrational. So you want to do this this paper then or let's let's concentrate on this one because this was the exact sort of question you wanted. So explain how asymmetric information. So obviously symmetric information is when like two parties have the same information or equal information. So this is asymmetric. So this is where one person has all the information or one person has less. So for example, if I was selling you a car, you have less information about that car than I do. So you may not make rational choices. You may not make good choices because I might be selling you a terrible car. The information is not even okay, how it can lead to market failure in the health provision. Okay, so let's have a look at asymmetric information. Okay? Types of definition. I've asymmetric information. Some trics so symmetric is when. Or economic exchange. Irand seller has the same information. Both parties in an economic exchange have equally equal information. Asymmetric information will where one part has more information than others in an economic exchange, like seller knows more about the product than the than the buyer. Okay, got it is same Yeah. Okay, okay. So this is where there might be an information gap where people are missing information. Okay? So what we've got here is explain how asymmetric information can lead to market failure in a health provision extract b. Okay. So see what we could use. Asymmetric. So first, it gives the definition about an asymmetric information. And secondly, have mixed the most countries mixed nohealth proftypically found from taxation, patient fees and private no, no, no, there's no reference. Also, there is the possibility of market failure if given asymmetric. Here we go. A typically phi a health health insurance policy, you know like if you buy private health insurance Yeah Yeah I know that health care insurance Yeah I know that when somebody is ill, somebody is died, they can they can give the money back that give some money back. So policy healthy 35 year old costs about 650 pounds a year, but this rises stely to 2300 pounds for those aged seven 70. Simply which claims are more likely a level of contribution is based on the risk of requiring health care clinalso turns to what means P I. I think it would say up there, it's like a private phi, private health insurance, private health insurance Yenna. So instead of you using like the nhs in the uk, you would go to a private hospital if you had a private insurance. So you can either take health insurance that was funded by the government or you can take health insurance that's you know private that you've paid for. Also, there is a possibility of market failure given asymmetric information. So think management incur high management and administrative costs, but I still don't know how to do that. Okay, think about how it wouldn't be provided properly if if there was asymmetric information. So tell me about a time where the patient. Patient knows more than the doctor, or in this case. Docturals more than patient. Yep. So tell me we can you can do it both ways. Tell me, in what situations around health would there be? The doctor knows more than the patient. The insurance and the price of all the equipment of the medical equipment. So if you think about it, right, we think about it, you've got we're talking about the government funding hospitals. So the government has limited resources, okay? And patients want to instantly be treated and want everything done for them quickly, don't they? They also want the best treatments and the most expensive treatments. Now there's asymmetric information. One party you'll know more than the other, but in different circumstances, different parties know more. So the doctors know more about medicine. They would know more about like the waiting lists. They would know more about things like you know the problems, the cost of providing it on the nhs. And they may not give you know the patient choice. They may say, this is the best drug for you, and the patient can't really argue. But on the other hand, when we're talking about taking out private medical insurance, no one knows more about your health than you. So if you went to a doctor or an insurance company, if you didn't tell them that you had had lots of stomach aches recently, or lots of headaches or found lumps on your arm or whatever it is, you know, I'm just making it up. They wouldn't know. They only know what you tell them. So this asymmetric information, you know more about your health when you're taking out insurance than the insurance company. So actually, it could lead to a market failure because it could lead to you getting a really cheap price. But actually you were very, very ill. Does that make sense? Because you haven't given them all that information. I haven't given them about the information. So so they might price your policy cheaper. Cheaper. I don't know why because price cheaper, but why they know more about us. Well, in some cases the doctor knows more, and in some cases the patient knows more. So I think the easiest one to understand is the one where the patient knows more. This not knows more about the doctor. So maybe then how where is it? Which part they should pay? Which part they shouldn't, which part they shouldn't. This is related to. Hang on. So let me type it. So when it's private. Was it was it about 650 pounds a year or me? I can't know what the quote was, maybe. So when a patient takes out private medical insurance, the patient wants to pay the lowest price. This could lead to the patient giving less or inaccurate information to the insurance company and hiding any medical issues. This means they would appear more healthy, as they would appear more healthy theybe charged at lower price, like the dollar, hundred 50 pounds a year in the case study, rather than if they were truthful about their illnesses or issues, they would end up paying more. So that's asymmetric. If the patient sorry, patient knows, okay, if the patients knows more, so they will not keep the information for the insurance. But if the doctor gives more, but the doctor knows more, so they will tell the they will tell the fake information to to the patient and let the patient give the wrong information for the insurance company. Yeah, too. Anyway, there are two ways. Yeah, there are two ways and two asymmetric information but that result in the same result. Yeah. So these two example, Yeah, I know that one result. Yeah that means one conclusion for this. The insurance company never get the information because patient knows more, they get the fake information. Doctor knows more, they will tell patient the wrong answer and the wrong answer will get to this insurance company. So the insurance company never get the same. Get the answer, get the information. Yeah and they may always just kind of price it. So theynever really price it correctly. There would always be a slight market failure. So therefore, they have to take an average. Yeah, exactly right. Because how can they know about everybody? Because you're never going to say, Oh Yeah, Oh, I've got this, I've got that, I've got the next thing you know, people don't. And that's market for that's asymmetric information. It's not the same information with the people supplying the service, the insurance company and the people using the service, the patient. It's imbalanced. And that's asymmetric information, sort of the information gap. There's a gap. If the gap wasn't there, the insurance company may have charged this person more, but because of the information gap, they charge them less because of that asymtric information. Because if this person had been truthful, the insurance company would have priced it higher for this person. And with the doctors, they could say, Oh, you know this drug would be better, but you know the patient just goes, okay, okay, but it may not be better or it may be better. You know the doctors know more about the medicine, but who knows, right? Yeah, let me see if there's any more asymmetric information gap questions. I don't think there's many. And then we'll have a look at what other ones you want to do. Hang on, this is all public goods, otherwise public goods. And. All here you go. Next one, to what extent my asymmetric information exists in the tobacco market. So again, it's six Marks. You want to define asymmetric information and what extent might it exist in the tobacco market? And we now want to just have a little look. I'm assuming there's a case study about the tobacco market. Okay. Yeah. So tobacco advertising in 2003, effective public health companies and media, educational campaigns, campaigns, medical, educational campaigns. So medical, so what's the question? How my asymmetric info, to what extent my asymmetric information exists in the tobacco market? So first of all, you want to tell me what asymmetric information is? What's asymtric information? The asymtric information is that both the buyers and sellers no, let me say again, the asymtric information is that the one side of one side between buyers and sellers take the take the whole information and the another side didn't doesn't know the another the whole information. Yeah. Yeah. So so last question. Yeah. So maybe this question. Maybe buyers no sellers knows information and and the seller and the buyer knows the buyers don't. Know the whole information. Yeah. Yep. So now we need to use that information from the case study to give some examples of that. The ban owned maco advertising 2003 2003I haven't I haven't born I haven't born 2003 of it's very early so I don't know there's advertising on the tobacco Yeah when before you were born back in the day they could advertise cigarettes and what's funnier is they could have like Young cool teenagers smoking and Yeah look look at these cool teenagers smoking and cool teenagers drinking and don't you want to be like them and look at this really you know fit man smoking and that's how they did it and that got banned that we should we shouldn't do that. We shthat it's very bad for this. Well, Yeah 100% that is very bad. Yeah so think about possibly the ban may have reduced asymmetric information, but then couldn't it? It could have reduced sort of that and then what do we think about public health campaigns? What they are is where like the government give information on things being bad for you. So things you might have seen is, you know they do public health campaigns about like eating too much sugar, eating too much salt, eating too much fat, you know Oh make sure you eat your a big one in the uk. I don't know if it was the same in China. They were all very like, Oh, you must eat five portions of fruit and veg a day. It's really good for you. And you must eat you know more of this and drink milk because it's good for your bones and things like that. Did you have that sort of thing in China or did that? Not really. What? Either there? Hello. Hello. It is better on tobacco out of a time. You're back. You're back. Maybe not my bike. Not. I'm back. I'm still here on you. Yeah, you have. You're here. Good. Oh, sorry. What were you saying? Tell me what you said about public health campaigns. Public health campaigns have hothe smokes to give up as effective public health campaigns and ban on tobacco advertising effective public health campaigns campaigns won't make make battle between battle between tobacco and the health no it's about the government telling people not smoke don't smoke public health campaigns Yeah Yeah Yeah so there is a rip Yeah that is so it's smoke is really for it's really there is really an asymmetric information because buyers and the government know no Oh my God sellers minus maybe is a celdollars. Anyway, government knows the whole information. They know if people, they know the tax revenue of the tobacco and the health care and the health value about this, health value about smoking. And of course, they know the externality because firstly, smoking that makes carbon dioxide and makes the global warming. And so anyways, any geography that's not about economics. So let me talk about economics. So firstly, second hand smoking. So and smoking that will make the health care increases Yeah of course, the payment about the health care can increase tax revenue, but just shterm for the long term. The social costs, for example, gives the spending about health care that will make the opportunity uncost and that will decrease that that and Yeah that will decrease education and then economic recession because less technology, less experiments Yeah and less tax revenue for the long term. And then 80 decrease because less people working or most people in in the hospital, let's think so. 80 decrease as decrease because the productivity decrease, all decrease. So for the long term, that is an active externality because social cost is higher than private costs. Nice. Very good. Very good. What about again? Again, they're using media educational campaigns. What are they doing with that? How are they trying to reduce the here this bit I just driall over it. So so the media, meaning like newspaper, tv, media, like all of ways of communicating. So how why would that reduce the asymmetric information if they used campaigns? Use campaigns because the government wants have, because the government wants the long term benefit. No, the short term benefit because advertisement on the tobacco can make, can increase the consumption in the in of the buyer, of the buyers. So they will increase the consumption, increase 80 in the short term. And I mentioned the negative externity negative, I mean, the drawbacks in the future. So maybe the government do not want to want that step. So they have the media, educational campaigns, that is same as the advertisement to tell people how tell people they shouldn't smoke. And because that is unhealthy anyway, momoreover, that is that is an addition of the information. Yeah because often because there's an asymmetric information, maybe maybe the sellers knows how unhealthy these tobos are, but the but sellers don't know. They just think that is amazing and that can make them relax relax after the whole day work. Yeah of course, maybe some people also knows maybe some people also knows in 20 first century, maybe maybe electronic games can also cher them up and let them relax also. Yeah let them feel boring in the games. So Yeah, by the way, Yeah so anyway, so there is asymmetric information for this for it between buyers and buyers and sellers government. Yeah, I think I think I think you're exactly right. And what gap I mean, the information failure, maybe it's just its means like that. Yeah. Yeah. And also, you're right. Like people might think it just helps them relax. Well, that was definitely the case when cigarettes were burfirst bought out because that's how they were advertised. You're exactly right. And it's only through like because obviously these tobacco companies don't want people to know how bad for you cigarettes are. They just want to sell cigarettes or tobacco. And Yeah, it will be very interesting in the future whether computer games do soon come with public health warnings because we don't know, do we, what damage they do in the future. You know it could be that they're like, Nope, these are terrible as well. So Yeah, good, good. I think you've just sort of you understand that quite well. The whole asymmetric information, symmetric information, I don't think there's any more questions on it. So it's not one. Look, that's all we've got. There's other questions on this, but it's not about asymmetric information. It's only about public goods, not about asymmetric information. So I haven't got any small asymmetric information questions for you or information gap questions have you got what was the other thing you said you wanted? So I've forgot what did you say at the beginning? You said information gap and information gap and the Oh, the information failure. They're the same. They're same. Yeah, Yeah Yeah Yeah. I don't think there's many more. Let me just double check. Maybe so that so the asymmetric information is that same as imperfect imperfect information. So anyway, there's a gap between sellers and buyers. How about the output gap? Output gap. Okay, let me just see what ones are. We've we've looked that's different. Hang on, that's this. We've done that. And you'll remember it as soon as I show you it. Wait, this is it. You'll remember. Wait, wait, wait, wait, wait, this is the output gap. Remember, it was the potential output on what they produce. And can you remember we did this diagram. Wait, we did not like that. This is the growth. And then can you remember it was like this? And remember, this was the gap between and this being your potential, can you remember and this been where you are? Hang on. More real GDP or output. Which we have. We told that we did that in last class. I remember. Yeah, that's what I'm saying. Yeah, I was gonna sign of that class in the end in the end of that class. So that is between growth. So what's that curve? What's that wave? That's just where you are. That's your actual growth. So that should grow. So Yeah, this one's line through the line. How about a straight line? So what's straight? That's your trend. That's your like trend Yeah trend problem and the outyeah not then the same as the physics graph. You said that you said that before web graph. Yeah. Oh my God, that's okay. No, no, no. It's good that I don't have basics, don't you? I don't like. Why don't you like physics? I don't. I don't I don't I don't know anyway, I don't like physics anymore more and maybe I prefer first the mh so I study for the mnow how? Yeah, that's not it for the mess now. Do you like have you dropped physics then? You don't do physics anymore. No, no, no. I still studying. So I have four subjects now. Four subjects MaaS economic for the MaaS physics. Oh, you're crazy. Yeah, I'm very crazy. So so Yeah, I will I will still studying physics until further math. Teacher says that it's very confident for me to study to study further math and then I can drop the physics. I don't like physics anymore. Can you know is it an option though to do just half an a level in physics, to do an as level in physics or not? Because then at least you've got it. You know like after one year, you can take in a half and either after one year, but it is very complex for it. Yeah the most memorized information, the most memorized question for me is in the September, maybe last year, and they tell me with the temperature increase, why is the one why resistance will increase when the temperature increases? And there is four Marks, maybe four Marks. And as I will answer, I will answer for the electrons brvibrate more and and latis ions vibrate more, and then there's more space to let current go through. And the fourth point is therefore less this more resistance, less currents when the temperature increase. So I so when it it asks me a question, I will I go back to the ground, ground, ground, ground and find the answer. So it's like, so it's like a, it's like Chinese questions syfor example, the Chinese question will ask me, look, this actually tree, what I will answer? I will answer what kinds of soil it has, what the, how, how long the brand it is, how, what's the height between of this tree and and the ground, the height between the turtree and height? And secondly, how many live leaves of these, all of this tree? And then I will answer, who plants this tree? Yeah the most memory about the Chinese questions is is that Yeah this an artists write an article in the last century just the one word and I and maybe that is six or eight points and I will I will answer what happened and what the writer want to express this word are Oh goodness. Yeah I'm also testing this one how how so maybe if you will answer me how to write it, it's very simple. This one in the in the whole article, I write it down how what this mean, what it will represent, what it how what it will I what it will appear in the dictionary. What's a novel expression? What the writer wants you expression? What's the background of this? What's its writer? And you've got to put all that Yeah I will put it off of that. Yeah, that's crazy. Yeah, Yeah Yeah it's it's like to taste a meal. And I will say, what's the details of this? What's what's the water it use? What's the blood kinds in the in the shef? What's the material material of these tools like that? That is a physics exams. It's very horrible, I promise. Oh, they sound horrible. Yeah he's very horrible. Oh, dear. No, well, I don't like the idea of them. Okay. Have you got something else you want to do today or should we just pick a new topic? No new topic. Okay, hold on then. Let's have a look. Let me read them out here and you can you can hold on. Let's see. Right you right. We can look at I'm trying to think of once we haven't done. Have we've done types of economies. We have a look at this one. I know it's a topic we've done a while ago. I don't know if we've ever done the questions on it. I'll free market. I think we have done that. Hang on, which is trying to find one we haven't done. Normative and positive statements, ppf and opportunity costs, nice subsidies in direct tax. What about indirect tax? I don't think we've the if we've done the paper on indirect tax, have a look. Have a look thetoo. If we don't demand side policies, we haven't done this. I'm sure we have. Wait a minute. Or aggregate demand, aggregate demand, aggregate supply. You love that inflation and deflation relation. Deflation? Yeah, I know that refllation inflation. Deflation. Yeah, I know that inflation and deflation. So is there any difference between this inflation and deflation? So inflation is a policy. Deflation is down. Negative inflation. So how about this inflation? Decreasing rate of inflation. It's just this or just I mean, this inflation. The definition. Can I understand it too? When the price increases, purchasing power will increase as well. So you've got hang on. Well, let's do that because inflation, I tell you what the good thing about this do the inflation and deflation questions because in every question, you could probably put inflation and deflation back in. Do you see what I mean? Hang on, let me see. We've got it. There's a PowerPoint, don't it? Okay, define the term inflation. So we have how would you define inflation? And then we'll look at the other things. We've got some inflation, price increases, purchasing power decreases. Perfect. Then you've got deflation. What's deflation? Deflation, a negative inflation. Decrease in the general price of goods and then you've got this inflation. Which is I well, I'll get you. Is this change the color? Inflation is a slowdown in the rate of price increases meaning inflation is still positive but a decreasing not a falling price. Falling price. So the price will still increase but the inflation is still positive but decreasing. Yes, slowing down. Yeah so it's a decreasase in inflation but the deflation is a negative inflation. So they are very different. Yeah, they very different. Yeah good, good, good good. Say then you've got limited this on this one as well. So you've got this there. So this is inflation. So here got inflation typically increasing. You're right, disinlation is where it's still increasing, but it's slowing down the increase. What am I doing? And then deflation is actually where prices are going down. Like you say, very, very different. Good, good, good. What was the next question? Explain one likely cause of inflation. Okay, what causes inflation? Process of inflation demand and and supply push, cost push Yeah cost push, cost push and demand pool. Tell me demand pool that is maybe a very successful inflation. Yeah, Yeah Yeah. Elon Musk every time with you, Elon sk. You're going be your answer to every it's going to be your answer to every question. It. Because I just know elombassk and bill ilgates bill ilgates and the and the most famous people now in in the in in the whole my life Yeah, maybe in 17. Yeah, maybe, maybe Yeah maybe it's nearly 17 years old. Yes. Yeah, in the whole economic part, I just know, you know, mask. Your answer to every problem? Yeah Yeah because that is not as a policy because that is not a policy. So so if I mentioned policies I will mention the presidents in China maybe or they will I will mention the Yeah Trump Yeah of course Trump Yeah p is going to be everywhere for you because I because they are so attractive here. So Yeah I just learned three people in the whole policy and economic Elon assk Trump and the Chinese President Xi Jinping. Just notice three people, just three people answer every problem. Yeah Yeah it is very reasonable for me to to know the I Jinping but and I learned and and what's the first time I learned in Trump note in 2020 is in the is that 2024? He said, he said in one he said that fifight fithat Yeah, I know I know him Yeah for that video, he said, he said that fight, fight, fight. He split in the, in some speech, in a speech event and in that in that event I learned that and and it is very famous for the SpaceX. Anyway Yeah maybe it's for the long term. There's an inflation for the whole America because many people willing to pay for the astronaut and the space. So for the long term, Yeah maybe people will do that 80%. So of the increase in the so Yeah, the costs will, the consumption will increase, 80 will increase. So there is a deficit in the products. Yeah maybe maybe the rocket will decrease. Maybe the rocket will deficit, and so many people will do. Many people have less purchasing power to do that. That is the inflation demand pull and the cost push, for example, is spyeah. No Trump, no Trump, no musk, no mask. Striker, it is striker, striker in the uk, striker in the uk. Yeah, okay. When I, when I came in London, when I came in London and I, and I get into, and I get into a train when I take back to, when I take off the no, when I get off the train to the London cross, is that king king ings cross? Yes. Yeah, kscstation. Yeah kscstation in there. And then boom, I heard that the workers are strike. That's the last train. That's the last train. I come back to kingings cross station. Really? Yeah, that's the last train. Yeah, last train. So how many do you go to London? Do you go to London? Yeah. Yeah. I go to London at August. Yeah August 26 th in 2025. I went there and stay there till now. Oh lovely. Yeah and I stay in the uk till now without backing to China. So I'm very used for Yeah, I'm very used for this for the time difference. Yeah. Yeah itbe hard. When you go visit China again for the chart time difference, you'll be very tired. Maybe, maybe youwill be very tired. Maybe I went back in the March. Oh, nice for Easter Easter holiday, the Easter break, the Easter holiday. Yeah, the Yeah, because there's just nine days. I don't know what's to know what gton knows. Just nine days, just nine days holiday. Just nine days. And and the subject teacher says, I will give this an then after half turn with instead of, instead of before, because I want you, I want you to have a, to prepare for it. I think just 90, this is any difference. And youlike nine days of just relaxing. Webe nice just to relax for a few days. I don't mind. I don't mind. There's nine days and Christmas, but I very mind this Christmas. Sorry, I don't, but I am very minfor this holiday. Why? Because there is Chinese New year. Yeah, Chinese New year, the school just give me nine days. And it would be so much more fun in China than the uk at this time of year. Yeah but just in the nines. Chinese New year no no. Chinese New year no Chinese New year, no celebrating for you. Just crying about a physics exam. Yeah Yeah Yeah Yeah physics Oh my God don't physics am Oh my God, I had a fix. Yeah after my birthday. Yeah after my birjust one day after my birthday physics exam, Yeah, I imagine easy to last the time, very sad. It's very sad. Chinese area, not good holiday, not good birthday. No, no, none of those things hang up trying to Farone. No, no, no. So what means price level? Means price level is just that easy. It's just the price that some things charge. That's why I skipped past it. Just the price. It's the, it's the amount of business is charging for something. Charging no the amount of business. Charging is prthe. Thing is, when you're defining, you don't want to use the words in the in the definition. So amount of business is charging for a product, so charging how much they sit hihego, I've got another definition for you that you could use instead. Here. The amount of business seller product for Yep. So that's the price just basically what you pay or what a consumer pays for a product. Something like that ryless of let's find a little question what we got here. No, no, let's not do that one with three minutes left. Let's Oh, see if you remember deflation. What's deflation? Deflation, the negative inflation. So with let me see see that the price level that is among a business is charging for a product among amount a business sell e product for what a consumer pays for a product. It's basically the price price of something, a product amount, amount of business sale or product for what consumers paeful products or service. So it's amount of the or amount of this of these products. No, the cost of the product the cost of the product that is Press level. Okay, okay, copy. Okay. Tell me what's deflation? Oh, you told me negative inflation. And what about this one? Which of the following is most likely to call deflation a fall in. So the deflation are full in deflation going. Oil prices, of course not. Inflation following an employment, of course inflation, of course not. Income tax rates are fallincome tax rates, no, a fallinterest rates, no. So a negative inflation. So when it, when the price increasthere will be more consumer, there will be more. When the price increases, there will be more, there will be more purchasing power instead of less. So oil prices take a fall in the fall in oil prices now? No. Is that this one? Fall in on oil prices things. So Hani'm just working out a course of deflation. So if income tax goes down, that doesn't make any difference at all. If interest rates go down. Unemployment goes down, employment goes up. I think it's oil prices because oil kind of contributes to petrol. So everything goes down in price. What do you think? So that oil prices of the cost will increase oil prices, no a fallfallare falling oil prices, falling oil prices that really decrease the cost. Boy unemployment. More people can afford this. Yeah, that just means you've got more that's more that you've got the ppf answer. Miss this one. Cheaper makes it this is think of think of your cost push. Cost push. So if oil. How prices that should be. So which one? The answer? This one, oil prices. Okay, oil prices cause used push inflation, the oil prices decreasase the costs goes down negative inflation, not not the cost increase, not not the price increase. Prices decreasase purchasing power increase over all. Yeah, right. Sunday night, you're going to go and chill out now. Relax. Yeah, Yeah, okay, relax. Alright. Yeah, alright, awesome. See you soon. Take care.