Kaneshi Hartfield is a sales representative with Plain Truth Advertising. She is an excellent sales representative, but corporate management feels that she is too independent. But they are afraid to act, since Kaneshi maintains her own list of key contacts. This is an example of:
A) asymmetric information problems.
B) different time horizons of the sales representative and management.
C) the free rider problem.
D) the failure of bargaining.

Question

Quizplus · Accepted Answer

Asymmetric information problems occur when one party has more or better information than the other, leading to an imbalance in a transaction or negotiation. In this case, Kaneshi's possession of a unique list of key contacts gives her more information and leverage over corporate management.

Kaneshi Hartfield Is a Sales Representative with Plain Truth Advertising