Which one of the following is an example of asymmetric information?
A) A supermarket repackages packages of stale meat and sells them.
B) A homeowner knowingly sells a house that has hidden electrical problems.
C) A company hires an employee who has an addiction to sleeping pills.
D) all of the above

Question

Quizplus · Accepted Answer

All three scenarios involve a situation where one party has more information than the other, leading to an uneven bargaining power. In choice A, the supermarket has information about the quality of the meat that the customer does not have. Choice B involves the homeowner knowing about the electrical problems that the buyer may not be aware of. In choice C, the hiring company may not be aware of the employee's addiction, but this information may affect the employee's job performance.

Which One of the Following Is an Example of Asymmetric