a What is the core argument presented in each of these const

a. What is the core argument presented in each of these constructs like Property Rights, Public-Choice, Principal-Agent, and Transaction Cost in support of privatization?

b. Do you agree with the core arguments presented by you in a) above? If Yes or No, Why?

Solution

a)

Asymmetric information is core argument presented in each these constructs like Property Rights, Public choice, Principal-Agent, and Transaction cost in support of privatisation.

b)

Asymmetric information implies the unequal distribution of information among the parties involved in economic transactions. Party underfed with respect to information is at loss. Hence, it leads to inefficient outcomes. Hence, this is right statement.