Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party.

Question

Quizplus · Accepted Answer

Information asymmetry refers to a situation where one party has more important information than the other party in a transaction. This can lead to an imbalance of power and potential problems such as moral hazard or adverse selection. Transparency, complexity, and imbalance are related concepts but do not fully capture the specific issue of information asymmetry.

Information ________ Exists When One Party in a Transaction Has