information asymmetry

(redirected from Information asymmetries)

Information asymmetry

Condition that information is known to some, but not all, participants.

information asymmetry

see ASYMMETRY OF INFORMATION.
References in periodicals archive ?
'Accumulated digital data can complement the limited data disclosed by SMEs and reduce the cost of information asymmetries,' Yoshino said.
For lenders, the system helps in reducing information asymmetries by making a borrower's credit history available to potential creditors and is, therefore, allowing lenders to accurately evaluate risks and improve portfolio quality in the form of a lower cost of capital for good borrowers.
Online platforms can foster insurance market transparency and reduce both transaction costs and information asymmetries, factors typically associated with increased competition and societal welfare.
Overseas Supplier may not be able to sell in the US market without Acme due to information asymmetries or "the lemons problem." George Akerlof explained that information asymmetries often characterize market exchanges because a potential buyer knows less about the product than the product's seller.
For instance, the assumption that political markets are perfectly competitive would imply that the poor classes of society should get more public goods and efficient redistribution as they are in majority in most of the cases but information asymmetries between the patrons and clients explain that this does not happen normally (Rolls, 2008).
The first step in the move will aim to reduce employee information asymmetries during job transitions.
Information asymmetries refer to the fact that information does not flow smoothly in the real world.
At the time that a firm initially contemplates such an offering, unusually large information asymmetries exist between its insiders and potential investors.
Moreover, due to their know-how, they are usually more efficient in selecting the loans with the lowest default rates because they are better able to monitor borrowers and mitigate information asymmetries. The problem is that institutional investors crowd out retail investors by winning the best loans (LIN & SIAS, 2015).
Second, reducing information asymmetries benefits not just the borrower but also the syndicate in that this allows them to effectively sell all or a portion of these loans in the secondary market at attractive prices.

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