Which assumption is the basis of the asymmetric information theory?
A) The union will not strike as a way to see if the other side is bluffing.
B) Parties may strike or lockout as a way to see if the other side is bluffing.
C) The union will call a strike vote strike as a way to see if the other side is bluffing.
D) Parties may not strike or lockout as a way to see if the other side is bluffing.

Question

Quizplus · Accepted Answer

The asymmetric information theory assumes that one party has more or better information than the other party, which leads to one party having more bargaining power than the other. This can lead to the use of strategic moves, such as a strike or lockout, to gain advantage in negotiations or to try to determine if the other party is bluffing. Choice B is the only option that reflects this assumption.

Which Assumption Is the Basis of the Asymmetric Information Theory