Tuesday, November 18, 2008

Rotten tomato is not a fresh tomato

You wanted to get rid of your tomato. In fact you had to, given you were short of money. You met with a potential buyer. He agreed that he would buy your tomato. Then today you find out your tomato is rotten. You are now busy seeking help to make your tomato look fresh. So that the potential buyer would not back off.

That's what comes to my mind when I read this whole Bumi debacle.

2 comments:

Tau Fik said...

Well, to be fair, it is a common practice for fruit/vegetable stands in traditional markets. They're hoping that they can use asymmetric information to their advantage.

Except for the fact that if the buyout firm figures out what's going on (which it probably will if it really looks into the matter), then information will be perfect and symmetrical, and then it all crumbles down.

Aco said...

Yes, Fik, that's what businesses do.