Micro - information gaps ✔️ Flashcards
1
Q
What is Asymmetric Information
A
When one party in a transaction has more information about a product than the other
2
Q
What is Symmetric Information
A
Where all parties in a transaction have access to the same information about the product
3
Q
How imperfect market information may lead to a misallocation of resources
A
- Consumers may end up paying too much or too little for a product
- firms may produce the wrong amount of a product
