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Asymmetric information in a market transaction occurs when there is unequal knowledge possessed by the multiple choice seller and the government. Buyer and the government. Buyer and the seller. Taxpayer and the government.

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Asymmetric information in a market transaction occurs when there is unequal knowledge possessed by the "buyer and seller".


Asymmetric information, otherwise called information failure, happens when one gathering to a financial exchange has more noteworthy material learning than the other party. This regularly shows when the merchant of a decent or benefit has more noteworthy learning than the purchaser, despite the fact that the turn around is conceivable. All economic exchanges include data asymmetries.

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