Which of the following relationships involves asymmetric information?
A)Patients can look up information regarding certain prescription drugs giving them the same information as their doctors.
B)Consumer Reports allows customers of DVD players to know as much about the quality of various players as the store salesperson.
C)Car Fax allows car buyers to obtain used-vehicle histories providing them with the same information as the dealership salesperson.
D)The batter in a baseball game must guess whether the pitcher is going to throw a fastball, curveball, or change-up.

Question

Quizplus · Accepted Answer

In a baseball game, the batter must guess what kind of pitch the pitcher will throw, but the pitcher has more information and control over what pitch they will throw. This creates an asymmetric information relationship. The other options involve situations where both parties have access to the same information, creating a symmetric information relationship.

Which of the Following Relationships Involves Asymmetric Information