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Competition and Information Asymmetry

Student Cristiana Matei ()
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Student Cristiana Matei: The Romanian Academy, Romania

Manager Journal, 2016, vol. 24, issue 1, 28-36

Abstract: The paper highlights the fact that the market analysis is not fully based on information asymmetry, a concept highlighted by the theory developed in the 70’s by G. Akerlof, Spence M., J. Stiglitz. Information asymmetry can often lead to negative effects on unfair competition and sustainable economic growth.The existence of information asymmetry often makes the uninformed buyer bear some additional costs. It is a situation where one must act and be aware that there may be valuable information and additional documentation which might reduce costs. Therefore, it is useful to analyse the relationship between information asymmetry and economic growth, especially as one of the perverse effects of information asymmetry is that there is not a clear obligation of the seller to voluntarily offer complete information, but on the other hand, he or she is obliged to correctly answer all questions.

Keywords: asymmetric information; sustainable growth; degree of operational leverage (search for similar items in EconPapers)
Date: 2016
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