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Unit 2.10: Asymmetric information (HL)

Asymmetric information is an imbalance of information that exists between buyers and sellers in a market that gives one side an unfair advantage in a transaction. For example, when someone goes to buy a used car the seller of the car will normally know more about the car than the buyer. The seller might know that the engine is unreliable but chooses not to tell the buyer about this.

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