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 Causes Asymmetric Information? Asymmetric information can occur in any situation involving a borrower and a lender when the borrower fails to disclose negative information about his or her real financial state. Or the borrower may simply fail to anticipate a worst-case scenario such as a job loss or an unanticipated expense. What are the
What Is Meant 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 the
Which Of The Following Is The Most Important Part Of A Negative Message? Which of the following is the most important part of a negative message? buffer, reasons, bad news, goodwill closing. … Analyze the bad news to see how it will affect his reader so that what is said is what he intends. What