Which is an example of asymmetric information?
A) an employer not knowing which job candidate will do the best job
B) a buyer using a compiled report on the quality of a used car
C) a shopper using Internet reviews to help her decide which washing machine to purchase
D) a doctor prescribing a medication for a patient

Question

Quizplus · Accepted Answer

Asymmetric information occurs when one party has more or better information than the other. In option A, the employer lacks information about which candidate will perform best, while the candidates may have more information about their own abilities.

Which Is an Example of Asymmetric Information