asymmetric information
noun
economics
: information relating to a transaction in which one party has relevant information that is not known by or available to the other party
Writing in an economics text about variances in the prices paid for art, [Steven] Cheung wrote that "asymmetric information," when one party knows more than the other, causes deceptive and unfair conduct. Buyers lacking information judge the quality by price, he wrote, and a "phony high price" was "often encountered in the arts market."—
Duff Wilson, Seattle Times, 27 Jan. 2003
Duff Wilson, Seattle Times, 27 Jan. 2003Unlike buying a piece of fruit or a shirt, where customers know exactly what they are purchasing, in markets with asymmetric information buyers do not know whether they are receiving the service or product that is in their best interest.—Charles Scott et al., Baltimore Sun, 29 Mar. 2010
compare adverse selection
Charles Scott et al., Baltimore Sun, 29 Mar. 2010Dictionary Entries Near asymmetric information
asymmetric digital subscriber line
asymmetric information
Cite this Entry
“Asymmetric information.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/asymmetric%20information. Accessed 22 Nov. 2024.
Copy CitationLove words? Need even more definitions?
Merriam-Webster unabridged
Share