“You want the messey agreement, you do know what that means”. The movie Intolerable Cruelty brings to light the messay agreement which is a prenuptial agreement which cannot be broken, it is said to be “ironclad”. In this prenuptial agreement whatever possessions that the couple bring into the marriage, will be return to them if the marriage is dissolved. Also, any earnings made during the marriage will be given to the person who earned it. No one can profit from the marriage. The prenuptial agreement only protects the wealthy and without it they are exposed. This paper will seek to find how does this movie relates to the economic theory asymmetric information.
Upon entering Miles office Marilyn had information about Miles that Howard Doyle was not aware off. She didn’t mention to Doyle that Miles was her ex-husband lawyer, and was the reason she didn’t get any money from her last marriage. Marilyn also had information that Miles did not know. She knew that Doyle would be an easy target because of his
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The salesman focus is to get the car sold, so he can meet his sales goals. Therefore, the car could be cosmetically beautiful but has many mechanical problems. Even though the buyer might be suspicious about the quality of the car, the buyer will have no knowledge of what is really wrong with the car. Whether or not is it a lemon? The lemons problem was first examined by economist George Akerlof in 1970. Akerlof explored the problem associated with pricing second hand cars, which he called a lemons market – a ‘lemon’ is a derogatory term for a poor quality second-hand car. Since, the buyer doesn’t have all the information, the buyer can solve this problem by doing their research before purchasing the car. The buyer can look into the seller’s reputation, hire a mechanic to inspect the car, look at the car history by using CARFAX and also acquiring