Ep. 652: Asymmetric Information and Entrepreneurship with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Power of Asymmetric Information in Entrepreneurship
The author of the paper says that asymmetric information about ability leads existing companies to employ only lemons, relatively unproductive workers. The talented and more productive choose entrepreneurship because they know something potential employers don't,. This implication that entrepreneurs are in fact cherries contrasts with the large body of literature and social science, which says that entrepreneurs are the lemons.
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