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Flashcards in Asymmetric Information Deck (3)
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1

asymmetric information

one party has more information in transaction than another

2

examples of asymmetric information

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

3

solutions to asymmetric information

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