The problem of asymmetrically distributed information, when sellers know something about their product that buyers do not, is recognized as a potential source of

Question

Quizplus · Accepted Answer

Asymmetrically distributed information can lead to market failure, meaning that the market does not allocate goods and services efficiently. This is because buyers may make worse decisions due to not having access to the same information as sellers, which can distort the market and lead to suboptimal outcomes.

The Problem of Asymmetrically Distributed Information, When Sellers Know Something