Know Thyself: Competence and Self-Awareness.
Atlantic Economic Journal 2010, June, 38, 2
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Introduction Classic analysis of asymmetric information typically starts with the assumption that an individual knows more about his or her own characteristics (e.g., work ability, driving skill) than an outside observer (e.g., employer, insurance company). In particular, the widespread use of self-selection constraints in economic theory is based on the premise that individuals can correctly ascertain their own types. An individual's type may not be observable to other market participants, but it is assumed to be observable to the individual.
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