People
always make decisions of different qualities, because of their unique
characteristics. People with different educational backgrounds and experience
make different judgments when facing a same problem. This is a very normal and
everyone could understand this. However, such situation makes information
always be asymmetric, as people have different processes of information
filtering and analysis, which means people will come out with different
relevant information and expected futures. Therefore, is it possible to narrow
the differences in decision making qualities by providing similar standards of
education? Narrowing the differences in decision making qualities could also
mitigate information asymmetry. This may mitigate the volatility in the market.
To conclude, improving education could reduce the wealth gap caused by the
different financial or investment decision making qualities.
No comments:
Post a Comment