How does the Internet typically impact price transparency and information asymmetry?
A) Both price transparency and information asymmetry increase
B) Both price transparency and information asymmetry decrease
C) Price transparency increases while information asymmetry decreases
D) Price transparency decreases while information asymmetry increases.

Question

Quizplus · Accepted Answer

The Internet increases price transparency because it allows consumers to easily compare prices across different sellers. It decreases information asymmetry by making more information about products and services readily available to consumers, thus reducing the knowledge gap between buyers and sellers.

How Does the Internet Typically Impact Price Transparency and Information