Canon - Information asymmetry

definition

Information asymmetry describes a situation in which market participants have unequally distributed, relevant information.

System model

Information asymmetry is described as an independent quantity within a consistent frame of reference, whose internal criteria are defined independently of recommendation, application, or evaluation.

Demarcation

  • Information asymmetry ≠ an adjacent but not identical concept
  • Conceptual definition ≠ subjective preference