The KKK and Real estate agents.

https://www.thesocialmediahat.com/article/social-media-marketing-real-estate-agents

Post #3 Rodgers
 The KKK and Real Estate Agents.
Information Asymmetry

•  Information Asymmetry was a big part of this chapter. How to use it, how to abuse it and perfect examples of both. “Information asymmetry deals with the study of decisions in transactions where one party has more or better information than the other,” (https://en.wikipedia.org/wiki/Information_asymmetry) 

•  The book talks about two examples of information asymmetry in how it was used correctly and how its been abused by people in powerful positions. The first example that is given with information asymmetry is term health insurance rates dropped in large amounts when the internet was first introduced. Why. Because for the first time people shopping for term life insurance were on a level informational field with the people selling this insurance. For the first time shoppers were able to go online and instantly compare rates of providers across states. They were not able to be forced into a plan that is above the normal rate because other providers did not have stores nearby. “With customers able to instantaneously find the cheapest policy, the more expensive companies had no choice but to lower their prices. Suddenly customers were paying $1 Billion less a year for term life insurance,” (FREAKONOMICS) 

• The new access people had to information leveled out the playing field in many professions where the professionals relied on themselves having the informational high ground. Professions such as Car salesman, real estate agents, and health insurance companies. The book also offers ways professionals abuse having more information than the consumer. “An expert uses his information advantage to make us feel stupid or rushed or cheap or ignoble,” (FREAKONOMICS) The book offers the example of buying a coffin for your recently departed loved one. Knowing that you are under lots of emotional stress the funeral director might take advantage of you and recommends that you buy the $7000 mahogany coffin. He is assuming that you do not know that Ebay sells the same coffin for $3000 and hopes you are too emotional distraught to go online and research coffins. 

•  Next Chapter, Why do drug dealers still live with their mother?