ABSTRACT
In 2001, the economists George Akerlof, Michael Spence, and Joseph Stiglitz jointly received the Nobel Prize in Economics for what the Royal Swedish Academy called "their analyses of markets with asymmetric information." As narrative fictions unfold from beginning to end, they rely on asymmetric information, exploiting diagetic gaps in order to develop themes, subplots, and morals. Anonymously authored Amelia: or the Faithless Briton tackles the challenge asymmetric information poses to efficient marriage outcomes, evincing anxieties over the stability of marriage as an institution managed by men. In terms of information asymmetries, Mrs. Hammond's behavior throughout Kelroy approximates adverse selection. On returning to the city "at the expiration of four years", indeed, she endeavors to negotiate marriage contracts while hiding the knowledge that her daughters are penniless. Where Kelroy begins by describing Mrs. Hammond's behavior as adverse selection, pathologizing her as a market negotiator, then, it concludes by demonstrating her scheme as moral hazard.
