Asymmetric information is:

Question

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Asymmetric information refers to situations where one party in a transaction has more information than the other party. This is a common occurrence in the Australian economy, particularly in the financial sector where lenders may have more information about the creditworthiness of borrowers than the borrowers themselves. This can lead to issues such as adverse selection and moral hazard, which have implications for the functioning of the markets in the economy.

Asymmetric Information Is