7 lines
647 B
Markdown
7 lines
647 B
Markdown
# Asymmetric Information
|
|
Information asymmetry is a condition in [price formation](price-formation.md) and economics transactions where one party has more or better information than the other. This asymmetry creates an imbalance of power in transactions. This can lead to [moral hazard](moral-hazard.md) or entire [markets](market.md) to be inefficient.
|
|
|
|
See also [broker](broker.md), [front running](front-running.md) and [market manipulation](market-manipulation.md).
|
|
|
|
## References
|
|
1. Akerlof, George A. "The market for “lemons”: Quality uncertainty and the market mechanism." In Uncertainty in economics, pp. 235-251. Academic Press, 1978. |