When the parties to a deal have access to different information:
A)markets are often inefficient.
B)markets can fall apart entirely.
C)the parties still try to make the best decision with limited information.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

When the parties to a deal have access to different information, markets are often inefficient, markets can fall apart entirely, and the parties still try to make the best decision with limited information. All three statements are true. Market inefficiency can occur when one party has more information than the other and can take advantage of it. This can lead to a breakdown in the deal or a less-than-optimal outcome. However, both parties will still try to make the best decision with the information they have available to them.

When the Parties to a Deal Have Access to Different