Adverse selection: opportunism that occurs because of asymmetric information.
Signaling: actions taken by informed parties with higher quality items or greater skills that allow uninformed parties to infer quality or skill.
Screening: actions taken by uninformed parties that attempt to separate sellers with higher quality items from sellers with lower quality items.
Lemons market: an outcome where low quality units drive high quality units from the market; also sometimes known as "Akerlof's lemons model" in honor of the man who first described it.
Cheap talk: claims or promises that can't be verified.
Separating equilibrium: an outcome where agents' actions differ by the quality of their items.
Pooling equilibrium: an outcome where agents' actions do not differ with quality.
