Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party.

Question

Quizplus · Accepted Answer

Information asymmetry is a situation where one party has more information that is critical to a transaction than the other party. This can lead to unfair or disadvantageous outcomes for the less-informed party. Transparency refers to the availability and accessibility of information to all parties involved, while complexity and discrimination are not directly related to information imbalances in transactions. Optimization is the process of maximizing or minimizing a certain outcome, which is not directly relevant to the concept of information asymmetry.

Information ________ Exists When One Party in a Transaction Has