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information asymmetry
Sign in to saveeconomics term for when one party in a transaction has an advantage in information
In the Vinony graph
Vinony's link graph records 248 inbound references to information asymmetry, and connects out to economics, Prize in Economic Sciences in Memory of Alfred Nobel and Joseph E. Stiglitz.
It sits within the topics Asymmetric information, Asymmetry and Law and economics.
Vinony links it to 39 Wikipedia language editions.
Wikidata facts
- Subclass of
- information
Show 4 more facts
- topic's main category
- Category:Asymmetric information
- has characteristic
- asymmetry
- P13411
- September 13
Sources (2)
via Wikidata · CC0
~40 min read
Encyclopedic overview
In an asymmetric balance of power, one side has more information than the other. 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.
Excerpted from Wikipedia’s “information asymmetry” article, available under the CC BY-SA 4.0 licence.