Microeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 1

In which of the following situations is an information asymmetry likely to cause problems?
a. Cab drivers know the shortest route to any destination better than their passengers do.
b. Managers can't always supervise members of their sales staff, who work on commission. (That is, staff members receive a percentage of the total value of the sales they make.)