Which of the following is most likely to be an example of asymmetric information?
A) a soft drink purchased in a vending machine
B) a car wash to benefit the local high school band
C) a collectible baseball card purchased on eBay
D) wireless service that includes unlimited minutes and texting

Question

Quizplus · Accepted Answer

The collectible baseball card purchased on eBay is most likely to be an example of asymmetric information. The seller may have more information than the buyer about the card's authenticity, condition, and rarity, which could lead to the buyer paying too much or being misled about the value of the card. In contrast, the other options do not involve significant information asymmetry between buyers and sellers.

Which of the Following Is Most Likely to Be an Example