Asymmetric information, also known as “information failure,” occurs when one party in a “transaction” possesses greater material knowledge than the other party. We tend to feel uncertain and nervous if we have the impression that excessive asymmetric information is present during a decision-making process. So what to do?
When facing a decision-making process involving potential asymmetric information, it’s important to remember that you can still influence the process by adjusting your decision-making style based on the nature of the decision, emotional attachment to the subject, potential consequences, and relying on your intuition. By being mindful of these factors, you can remain calm and confident despite any existing information imbalances.
FURTHER REPRODUCTION PROHIBITED WITHOUT PERMISSION