Information asymmetries are defined to be when:
A) one party to a transaction has more information that another.
B) information isn't readily available to anyone.
C) both sides to a transaction have equal information.
D) one party withholds information from the other party.

Question

Quizplus · Accepted Answer

Information asymmetries occur when one party in a transaction has greater knowledge or more information than the other party. This can lead to unequal bargaining power, potential exploitation, and market failure.

Information Asymmetries Are Defined to Be When