Asymmetric Information

Question 1

asymmetric information

Answer 1

one party has more information in transaction than another

Question 2

examples of asymmetric information

Answer 2

someone selling land may know that neighbouring land is used for chemical plant but with holds that information when selling - consumer will pay too much for land

Question 3

solutions to asymmetric information

Answer 3

legislation to punish insider information although difficult to enforce
promote information (e.g. make internet access human right)