Asymmetric Information

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Asymmetric information

Information that is known to some people but not to other people.

A situation in which one party to a transaction has information about the transaction to which the other party is not privy. Asymmetric information may result in a bad deal for one party (often but not always the buyer). To give an extreme example, the seller of real estate may know that his property is lined with land mines. This would ordinarily result in a (steep) drop in price, but if the buyer does not know this, it may not. Asymmetric information is not as prevalent as it once was because of increased transparency and legal requirements for disclosure, as well as better technology. Indeed, trading securities with asymmetric information is often illegal. See also: Insider trading, moral hazard, adverse selection.

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Capital market imperfections view Lemons Problem Miller and Modigliani's Irrelevance Proposition Miller, Merton Perfect Market View Signaling Approach			From (24), the expected utility of each agent, excluding cost of effort, is illustrated as [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] (30) If the principal knows the efforts of the agents, he only has to pay a certain amount, as given by [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] (31) Then, from (27) and (31), the risk compensation for asymmetric information is denoted as [DELTA][W. Joint contract under inequity aversion by Wei, Guangxing; Qin, Yanhong / Journal of Service Science and Management (JSSM) Asymmetric information between sellers and buyers of financial products can easily leave buyers vulnerable to abuse, as we saw with mortgage-backed securities. Let Finance Skeptics Take Over by Daily News Egypt (Egypt) Buyers who were subject to asymmetric information were not told the whole truth when they invested in certain derivatives. Lessons from Japan: an interview with economist Charles Horioka: ... by Kovanda, Lukas / The New Presence: The Prague Journal of Central European Affairs			Assumed Bond Assumed Interest Rate Assumed Liability Assumed Loss Ratio Assumed Shelter Cost Assumption Assumption Certificate Assumption Fee Assumption of Risk Assumption Reinsurance assumptions and limiting conditions Assunzione di rischi Assurance Assurance contre les risques de change Assurance Service Assurance-chomage Assurance-maladie Assurance-vieillesse Assured Assurer Assureur Asta competitive Asterisk ASX ASX Derivatives and Options Market Asymmetric Information Asymmetric Margining Asymmetric Payoff Asymmetric Risk Exposure Asymmetric Taxes Asymmetric Threat Asymmetric Volatility Asymmetry Asymptote Asynchronous At At Fault At Par At Post Education At Risk At Sign At the Bell At the Close Order At the Figure At the Full At the Market At the Money At the Opening Order AT&T At-Risk Rule at-risk rules			Asymmetric Cluster Chip Multiprocessor Asymmetric compression Asymmetric Cooling System Asymmetric Coplanar Stripline Asymmetric Coupled Double Quantum Well Asymmetric Coupled Quantum Wells Asymmetric crying facies Asymmetric cryptography Asymmetric Defected Ground Structure Asymmetric Diels-Alder reaction Asymmetric Diels-Alder reaction Asymmetric Digital Subscriber Line Asymmetric Digital Subscriber Line Asymmetric Digital Subscriber Line asymmetric digital subscriber loop asymmetric digital subscriber loop Asymmetric dimethylarginine Asymmetric Double Cantilever Beam Asymmetric Double Quantum Well Asymmetric encryption Asymmetric Fabry-Perot Asymmetric Fabry-Perot Modulator Asymmetric Field Inversion Gel Electrophoresis Asymmetric Flow Field-Flow Fractionation Asymmetric Four-Point Bending Asymmetric Hetero Diels-Alder asymmetric hind quarter syndrome asymmetric hindquarter asymmetric hindquarter Asymmetric Information Asymmetric Intramolecular Heck Reaction Asymmetric key Asymmetric key algorithm Asymmetric key algorithms Asymmetric key cryptography Asymmetric key encryption Asymmetric key encryption algorithm Asymmetric Key Synchronous Cipher Modulation Asymmetric Logical Unit Access Asymmetric Margining Asymmetric Massively Parallel Processing asymmetric modem Asymmetric Modulation Doped Quantum Well Asymmetric Molecule Asymmetric Multi-Process Event-Driven Asymmetric Multiple-Quantum Well Heterostructures Asymmetric Multiplier Asymmetric multiprocessing Asymmetric Multiprocessing System Asymmetric Nonlinear Photonic Crystal Asymmetric Parallel-Plate Waveguide Luneburg Lens Asymmetric Particle Interaction Accelerator Research Yard Asymmetric Pay-Off Asymmetric Pay-Offs

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