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Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party.

1 Answer

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Answer:

asymmetry

Step-by-step explanation:

A scenario in a contractual agreement or commercial transaction in which the two parties involved have disproportionate information is referred to as information asymmetry. Asymmetric information happens when one side in an agreement has more information and material knowledge than the other side. Information asymmetry is also known as information loss or information mismatch. It is frequently used in negotiations between buyers and sellers in when the vendor has more information or understanding about the goods than the buyer. It is also feasible that the buyer possesses more material knowledge than the supplier.

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