Editing Kenneth Arrow (section)

===Information economics===
In other pioneering research, Arrow investigated the problems caused by [[asymmetric information]] in markets. In many transactions, one party (usually the seller) has more information about the product being sold than the other party. Asymmetric information creates incentives for the party with more information to cheat the party with less information; as a result, a number of market structures have developed, including [[warranty|warranties]] and third party [[authentication]], which enable markets with asymmetric information to function. Arrow analysed this issue for medical care (a 1963 paper entitled "Uncertainty and the Welfare Economics of Medical Care", in the American Economic Review);<ref name="Savedoff">{{cite journal |last1=Savedoff |first1=William D. |title=Kenneth Arrow and the birth of health economics |journal=Bulletin of the World Health Organization |date=February 2004 |volume=82 |issue=2 |pages=139–140 |pmid=15042237 |pmc=2585899 |hdl=10665/269064 |url=https://scielosp.org/article/bwho/2004.v82n2/139-140/ |access-date=27 March 2023 |language=en |issn=0042-9686}}</ref> later researchers investigated many other markets, particularly second-hand assets, online auctions and insurance.