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In modeling and empirical work, Schmidt studies information asymmetries, “a situation in which one parties knows more than another party.” Examining the bullwhip effect in operations management, Schmidt suggests that countercyclical management of customerscan improve firms’ ability to meet demands smoothly. Information asymmetry models can also be used to identify firms or entities thatintend to providefalse information on the internet by observing the level of transparency included in their websites.
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