Asymmetric information results in market efficiency when it is in the self-interest of its possessor not to supply it.

Name: Asymmetric information results in market efficiency when it is in the self-interest of its possessor not to supply it.
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Question

Quizplus · Accepted Answer

Asymmetric information typically leads to market inefficiency because it causes transactions to occur under imperfect information, where one party has more or better information than the other, potentially leading to adverse selection or moral hazard.

Asymmetric Information Results in Market Efficiency When It Is in the Self-Interest