Kathy has access to the Internet and is able to search and compare the price and quality of the products she wants to purchase. However, Martin does not have access to the Internet and stays in a remote town where he is not able to get such details regarding the product or service he wants to purchase. Such a decision situation where Kathy has more or better knowledge about products or services than Martin is known as _____.
A) strategic superiority
B) positional awareness
C) data redundancy
D) operational precedence
E) information asymmetry

Question

Quizplus · Accepted Answer

The situation where Kathy has better knowledge about products or services than Martin is known as information asymmetry. This is a situation where one party in a transaction has more or better information than the other party, which can lead to an unfair advantage or exploitation. In this case, Kathy may be able to negotiate a better price or quality for the product or service she wants to purchase due to her information advantage.

Kathy Has Access to the Internet and Is Able to Search