A market condition, in which two buyers have differing levels of information which creates a power imbalance between them and, ultimately, a failure of the market forces. Adverse selection as in the media propaganda, moral hazards, and monopolies of knowledge in the elite are some examples.
Diagrams
Originated from/Coined by
George Akerlof, Michael Spence, and Joseph E. Stiglitz
Further Reading/ References
https://en.wikipedia.org/wiki/Information_asymmetry
https://www.economist.com/the-economist-explains/2016/09/04/what-is-information-asymmetry
https://www.linkedin.com/pulse/information-assymetry-1-honglin-zhang/