Which of the following is an example of asymmetric information?
A)A beverage purchased from a vending machine
B)A car wash to benefit the local high school band
C)A collectible baseball card purchased on eBay
D)Cellular service that includes unlimited minutes and texting
E)A buy-one, get-one free offer on garments

Question

Quizplus · Accepted Answer

Asymmetric information is a situation where one party in a transaction has more or better information compared to the other party. In the case of buying a collectible baseball card on eBay, the seller may have more information about the card's condition, rarity, and value than the buyer. This information asymmetry can lead to a potential loss for the buyer if they overpay for the card.

Which of the Following Is an Example of Asymmetric Information