Asymmetric Information Flashcards
1
Q
asymmetric information
A
one party has more information in transaction than another
2
Q
examples of asymmetric information
A
someone selling land may know that neighbouring land is used for chemical plant but with holds that information when selling - consumer will pay too much for land
3
Q
solutions to asymmetric information
A
legislation to punish insider information although difficult to enforce promote information (e.g. make internet access human right)
