What is asymmetric information If there is asymmetric inform

What is asymmetric information? If there is asymmetric information, do sellers always have superior information than the buyers?

Solution

Asymmetric information menas that some parties involved in a transaction have better information than others. For example, when Mr. X is selling a car, he has better information about the quality of car and number of kms it has been used as compared to a buyer.

However, there may be cases, when buyers have better information as compared to seller.

Sometimes, seller may not be aware of the utility of the product to the extent the buyer knows as he is actuallly usng it.