When one party to a potential trade knows more than the other, the party who knows the least may leave the market, causing it to fail.

Name: When one party to a potential trade knows more than the other, the party who knows the least may leave the market, causing it to fail.
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Question

Quizplus · Accepted Answer

This phenomenon is called information asymmetry and can lead to market failure if those with less information leave the market, resulting in decreased trading volume and liquidity.

When One Party to a Potential Trade Knows More Than