Asymmetric information can occur when the provider of a service is better informed than the consumer of the service.

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Asymmetric information refers to a situation in which one party in a transaction has more or better information than the other party. In the case of a service provider and consumer, the provider may know more about the quality or effectiveness of the service they are offering, which can lead to information asymmetry.

Asymmetric Information Can Occur When the Provider of a Service