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 ?
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.
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.
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.
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.
Asymmetrical information between buyer and seller frequently can lead to consumer fraud, abuse and seller-biased recommendations, i.
Moreover, market makers have always been privileged with access to asymmetrical information derived from displayed orders of different market participants.
Victory or defeat in a battle frequently hinged on the ability of a general officer and his staff to either leverage or overcome asymmetrical information about the hidden characteristics of a situation.
As Nelson puts it, whereas earlier Chicago economists tended to show why market transactions lead to unambiguous improvements, institutional economists focus on bow these transactions take place, and especially on what tends to burden, obstruct, or distort them: asymmetrical information, opportunism, and the like.
The winners, George Akerlof, Michael Spence, and Joseph Stiglitz, were honored for their groundbreaking work in the field of markets with asymmetrical information.
Another chapter covers the significant asymmetrical information and adverse selection associated with catastrophic and cataclysmic losses.
Indeed, Baskin and Miranti are most concerned with the problem of asymmetrical information, not simply as it exists between buyers and sellers of securities but also between what the historian Mark Roe has called strong managers and weak owners.

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