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Asymmetrical information

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How does asymmetrical information affect the product market?

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// In this paper, we will discuss about asymmetrical information in context of product market. The paper will also include the impact of asymmetrical information in product market. With the help of an example, we will elaborate how asymmetrical information of the product affects market efficiency.//

Market efficiency is increased by effective utilization of available resources in every industry. Effective information about the product is also necessary for increasing the efficiency of product market. Two parties (buyer and seller) are involved in the exchange of commodity. When one party usually, the seller has more information about the product attributes, such as quality and price etc. but the buyer does not have enough information product attributes, then it is known as asymmetric ...

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Asymmetric information and agency cost theories

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1000-1500 words - using academic sources (not Wikipedia or other online encyclopedias), such as academic textbooks and journals.

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