Symmetric information generally leads to efficient allocations of resources.

Question

Quizplus · Accepted Answer

When there is symmetric information, each party in a transaction has equal knowledge about the transaction. This generally leads to efficient allocations of resources because all parties can make informed decisions and there is less risk of one party taking advantage of another's lack of information. This can result in lower transaction costs and a more efficient allocation of resources.

Symmetric Information Generally Leads to Efficient Allocations of Resources