When individuals do not have complete information or lack the ability to understand or judge the quality of the good they seek to purchase, there is:

Question

Quizplus · Accepted Answer

Information asymmetry refers to a situation where there is a difference in the information available to buyers and sellers, leading to one party having an advantage in making decisions. This can lead to situations where buyers are unable to judge the quality of a good accurately, resulting in potential exploitation by sellers.

When Individuals Do Not Have Complete Information or Lack the Ability