|Mause I 166
Asymmetry/Information Markets/Arrow: Market participants are often confronted not only with a lack of information of the type incomplete information, but also with a lack of information of the type asymmetric information. (1)(2)
Example: A buyer is less informed about a used car than the seller.
Terminology: this is described in the literature with the terms "principal" (seller, superior; holds more information) and "agent" (buyer, employee; holds less information).
Problem: a) a buyer who is not aware of his information deficit will be disadvantaged, b) a buyer who is aware of this deficit may not enter into a contractual relationship. See Information/Arrow.
1. Kenneth J. Arrow, Uncertainty and the welfare economics of medical care. American Economic Review 53, (5) , 1963, p. 941– 973.
2. G. A. Akerlof, The market for ‚Lemons‘: Quality uncertainty and the market mechanism. Quarterly Journal of Economics 84 (3) 1970 p. 488– 500._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Kenneth J. Arrow
Social Choice and Individual Values: Third Edition New Haven 2012
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018