Asymmetric information means that
A) the buyer must have information that the seller does not have.
B) the seller must have information that the buyer does not have.
C) the buyer and seller have the same information.
D) either the buyer has information that the seller does not have or the seller has information that the buyer does not have.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Asymmetric information refers to a situation in which one party in a transaction has more or better information than the other party. This can happen either when the buyer has information that the seller does not have, or when the seller has information that the buyer does not have. Therefore, option D is the correct answer.

Asymmetric Information Means That