LS19 - Information Gaps Flashcards
1
Q
What are the different types of information gaps?
A
Perfect information
Symmetric information
Asymmetric information
Information gap
2
Q
What is a perfect information gap?
A
When a buyer and/or seller has a complete understanding of he quality and nature of a good or service
3
Q
What is a symmetric information gap?
A
When buyers and sellers have equal amount of knowledge
4
Q
What is an asymmetric information gap?
A
When buyer or seller has more inflation about a good or service than the other party
5
Q
What is an information gap?
A
When either buyer/seller doesn’t have access to the information needed for them to make a fully-informed decision
