to a 2013 study from the University of Chicago, about 29% of U.S. workers have jobs that require occupational

licenses.

Occupational licenses have their downside as well, as they represent a barrier to entry to certain industries.

This makes it more difficult for new entrants to compete with incumbents, which can lead to higher prices and

less consumer choice. In occupations that require licenses, the government has decided that the additional

information provided by licenses outweighs the negative effect on competition.

Access for free at openstax.org
16.1 • The Problem of Imperfect Information and Asymmetric Information 393

CLEAR IT UP

Are advertisers allowed to benefit from imperfect information?
Many advertisements seem full of imperfect information—at least by what they imply. Driving a certain car, drinking

a particular soda, or wearing a certain shoe are all unlikely to bring fashionable friends and fun automatically, if at
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