Asymmetric information refers to the fact that agents have superior knowledge and can, therefore, act against the interests of principals.

Name: Asymmetric information refers to the fact that agents have superior knowledge and can, therefore, act against the interests of principals.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Asymmetric information occurs when one party in a transaction has more or better information than the other, potentially leading to actions that are not in the best interest of the less informed party.

Asymmetric Information Refers to the Fact That Agents Have Superior