Opportunism may occur when
A) both parties have limited information.
B) both parties have full information.
C) one party has information the other does not.
D) All of the above.

Question

Quizplus · Accepted Answer

Opportunism is more likely to occur when one party has information that the other does not. This information asymmetry can allow the informed party to take advantage of the other party's lack of knowledge. When both parties have full information, it is less likely that opportunism will occur, as both parties can make informed decisions based on all available information. Limited information can create uncertainty, but it does not necessarily lead to opportunism.

Opportunism May Occur When