Introduction

During an intense game theory discussion at an on-campus tutorial, I became overly excited and started playing with my armband. Suddenly it ripped apart. A single pearl had landed on my MacBook keyboard and I did not notice. Unknowingly, I closed the screen at the end of class, causing a crack down the middle of the display. Being aware of the incredibly high costs of official apple repair services, I began looking for independent repair-shop alternatives, but I also knew many internet articles warned of risks (Mitchell, 2011). What I encountered on my journey through the city is the basis of this paper: a landscape of terrible reviews, dissatisfied customers and unfriendly shopkeepers. This paper will explore the role of asymmetric information in this market and how I reached my final decision.

First, I will describe the problem. Next, a model will be discussed for this market. Then an evaluation of the results will be made. Finally, the model’s implications will be discussed, and my personal decision process described.