Information asymmetry refers to
A)the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior.
B)the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party.
C)an action taken by an informed party to reveal private information to an uninformed party.
D)a difference in access to relevant knowledge.

Question

Quizplus · Accepted Answer

Information asymmetry refers to a situation where one party in a transaction has more or better information than the other party. This creates a difference in access to relevant knowledge and can lead to unequal outcomes in the transaction.

Information Asymmetry Refers to