Information asymmetries occur when:
A) one participant in a transaction has more information than another.
B) information isn't readily available to anyone involved in a transaction.
C) both participants in a transaction have equal information.
D) None of these are true.

Question

Quizplus · Accepted Answer

Information asymmetries refer to situations where one participant in a transaction has more information or knowledge than the other. This can create an imbalance of power and lead to negative outcomes for the less-informed participant.

Information Asymmetries Occur When