Asymmetric information can exist before, but not after, a transaction.

Name: Asymmetric information can exist before, but not after, a transaction.
Brand: Quizplus
Rating: 4.9 (42 reviews)

Question

Quizplus · Accepted Answer

Asymmetric information can exist both before and after a transaction. Before a transaction, it is often related to one party having more information about the product or service being exchanged (adverse selection). After a transaction, it can relate to one party having more information about the outcome or usage of the product or service (moral hazard).

Asymmetric Information Can Exist Before, but Not After, a Transaction