Y1 35 Info provision

Question 1

What is info provision

Answer 1

Government funded information provision/adverts/ education to change consumption

Question 2

Info provision chain of reasoning

Answer 2

Demand shifts to social welfare max
Consumers make rational decisions after learning
Solve over/underconsumption
Allocative efficiency
Non paternalistic, non market

Question 3

Info provision cons

Answer 3

Gov. funded
No success guarantee: Addiction, poor quality
LR not SR: Info takes time for society to absorb