Lorna Walter (@lornawalter.bsky.social)

ascendancee_ on Instagram: "The scene exemplifies adverse selection, a classic outcome of asymmetric information in finance.The professor knows the action is a…" The scene exemplifies adverse selection, a classic outcome of asymmetric information in finance.The professor knows the action is a test, while the students do not—creating an information gap. Faced with uncertainty, students act to protect themselves individually by remaining silent, avoiding personal risk rather than pursuing collective action for fairness. This self-protective behavior leads to adverse selection: those willing to challenge the decision withdraw, while compliance becomes the dominant response.As a result, the arbitrary action goes unchallenged, producing an inefficiency in the classroom’s “justice system.” Fairness is effectively devalued, and everyone becomes more exposed to future arbitrary treatment—mirroring how asymmetric information can generate systemic risk in financial markets.Follow @ascendancee_ for more such reels 🙌🏻🔥........#usayouth #rights #adverseselection #asymmetricinformation #marketinefficiency #systemicrisk #collectiveaction #fairness #gameTheory #behavioraleconomics #entrepreneurship #success #viralnow https://www.instagram.com/reel/DTuQJYej91u/?igsh=Nnl3c3NjdDJwbGY1