Asymmetric information occurs when the two parties in a market transaction do not have the same
amount of information regarding the product or process involved in the transaction.

Question

Quizplus · Accepted Answer

Asymmetric information refers to a situation where one party has more information than the other party in a market transaction. This can lead to market failure as the party with less information may end up making decisions that are not in their best interest.

Asymmetric Information Occurs When the Two Parties in a Market