Information asymmetry
id:
information-asymmetry-182-10415256
title:
Information asymmetry
text:
In contract theory, mechanism design, and economics, an information asymmetry is a situation where one party has more or better information than the other. Information asymmetry creates an imbalance of power in transactions, which can sometimes cause the transactions to be inefficient, causing market failure in the worst case. Examples of this problem are adverse selection, moral hazard, and monopolies of knowledge. A common way to visualise information asymmetry is with a scale, with one side b
brand slug:
wiki
category slug:
encyclopedia
description:
Concept in contract theory and economics
original url:
https://en.wikipedia.org/wiki/Information_asymmetry
date created:
2003-09-02T06:01:28Z
date modified:
2024-09-06T12:12:42Z
main entity:
{"identifier":"Q431965","url":"https://www.wikidata.org/entity/Q431965"}
image:
{"content_url":"https://upload.wikimedia.org/wikipedia/commons/5/53/Information_balance_diagram.svg","width":900,"height":540}
fields total:
13
integrity:
16