There exists asymmetric information in a market
A) if both sides of the market have the same information about the good.
B) only if buyers have better information about the good than sellers.
C) only if sellers have better information about the good than buyers.
D) if either buyers or sellers have better information than the other group.

Question

Quizplus · Accepted Answer

Asymmetric information in a market exists when one group of market participants (either buyers or sellers) has better information about the good than the other group. This can lead to market inefficiencies and potentially unfair outcomes.

There Exists Asymmetric Information in a Market