A Rude Young Man

Information asymmetry is the core concept of information economics and an important basis for the design of incentive mechanisms. The so-called information asymmetry means that the two parties to a transaction have different understandings of the knowledge, information, or probability or probability distribution of an event. This may include the following situations: one party knows but the other party does not know, or one party knows more and the other party knows very little, or there is hidden information or hidden actions that cannot be verified. Even if it can be verified, it will require huge economic costs. Information asymmetry theory means that in market economic activities, various types of personnel have different understandings of relevant information; those with sufficient information are often in a more advantageous position, while those with poor information are in a relatively disadvantaged position. This theory holds that sellers in the market know more about various information about goods than buyers do; the party with more information can