asymmetrical information

asymmetrical information

a situation where the parties to a CONTRACT have differing degrees of information, including ‘hidden’ information, concerning the terms, conditions and operational details of the contract. Thus, it may be possible for one party to ‘exploit’ this knowledge to their advantage and to the detriment of the other party. See PRINCIPAL-AGENT THEORY.
References in periodicals archive ?
The new alliance provides clients with an asymmetrical information advantage that translates into better decisions.
With India's growth impetus majorly coming from the mid-sized market space, overcoming asymmetrical information will be one of the biggest enablers," said Priyetu Shekhar on his appointment.
Demetriou said that European Union institutions identified three major obstacles; the pace and complexity of judicial procedures, the lack of a market for non-performing loans as a result of the asymmetrical information of buyers and sellers, the absence of extrajudicial procedures and the absence of tax counterincentives.
She wrote for the Daily Beast, Newsweek, the Atlantic and the Economist and founded the blog Asymmetrical Information. She is the author of The Up Side of Down: Why Failing Well Is the Key to Success.
It is certainly the case that assumed asymmetrical information between the buyer and seller will reduce the market value of a car at the point of purchase.
Akerlof, who is married to Fed chair Janet Yellen, won the Nobel Prize in 2001 for his groundbreaking work on asymmetrical information and what happens in markets when sellers hold more information than buyers.
The dinner was also a manifestly political act in politicized timesthe latest salvo in the asymmetrical information war being waged between the Russians and Ukraine over the legacy of World War II, and by extension who was a true anti-Semitic fascist.
Markets run on asymmetrical information. Stock prices bounce around because investors are doing their best to use their own superior information for personal gain.
This contributes to diminishing the cost for arhtiyas especially with regards to the asymmetrical information costs that exists in credit markets.
Chapters discuss private goods without externalities, externalities, public goods, public utilities, and uncertainty and asymmetrical information.
For services in which the seller holds most of the informational cards (i.e., asymmetrical information), how does the consumer know that the information gathered is in fact current, unbiased, credible, correct and needed?
Moreover, market makers have always been privileged with access to asymmetrical information derived from displayed orders of different market participants.

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