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Information asymmetry

   Also found in: Wikipedia 0.01 sec.
Information asymmetry
Condition that information is known to some, but not all, participants.


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Our results are consistent with the notion that the use of derivatives lowers information asymmetry related agency problems.
Yet experience-rated systems were plagued by their own unanticipated consequences, the most serious of which were information asymmetry and outright insurance fraud.
This is a classic case of the effects that adverse selection, which is caused by information asymmetry, can have on the financial service sector.
 
 
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