information symmetry

Which Is An Example Of Asymmetric Information?

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Which Is An Example Of Asymmetric Information? One common example of asymmetric information is the second-hand car salesman. The salesman knows if there are any defects with the car such as faulty electrics, but the customer doesn’t. In turn, the customer is willing to pay more than they would otherwise, had they known about all

What Do We Mean By Asymmetric Information?

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What Do We Mean By Asymmetric Information? “Asymmetric information” is a term that refers to when one party in a transaction is in possession of more information than the other. In certain transactions, sellers can take advantage of buyers because asymmetric information exists whereby the seller has more knowledge of the good being sold than