LS19 - Information Gaps Flashcards
1
Q
Perfect information
A
When a buyer and/or seller have a complete understanding about the nature of a good or service
2
Q
Symmetric information
A
When buyers and sellers have equal amounts of knowledge about a good or service
3
Q
Imperfect information
A
When a buyer and/or seller lacks a complete understanding of the nature and quality of a good or service
4
Q
Asymmetric information
A
When buyer or seller has more information has more information about a good or service than the other party
5
Q
Information gap
A
When either the buyer or seller doesn’t have access to information needed for them to make a fully-informed decision
