information asymmetry


Condition in which at least some relevant information is known to some but not all parties involved. Information asymmetry causes markets to become inefficient, since all the market participants do not have access to the information they need for their decision making processes. opposite of information symmetry

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Our CEO was very confused about our reports due to information asymmetry between the different departments and the managers that run each of them.

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In order for the market to function correctly, they try to make sure there is not any information asymmetry that would cause some investors to respond differently than others.

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The investment brokers knew that the information asymmetry caused them to be looked upon with suspicion by fellow brokers who were concerned they may be engaging in insider trading.

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informal economy information circular