Which of the following is most likely to be characterized by substantial asymmetric information?

a. a soft drink purchased in a vending machine.

b. a car wash to benefit the local high school band.

c. a collectible baseball card purchased on eBay.

d. wireless service that includes unlimited minutes and texting]

Question

Business

Lucian

11 August, 17:50

Which of the following is most likely to be characterized by substantial asymmetric information?

a. a soft drink purchased in a vending machine.

b. a car wash to benefit the local high school band.

c. a collectible baseball card purchased on eBay.

d. wireless service that includes unlimited minutes and texting]

+3

Answers (1)

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Madelynn Allison · Answer 1

d.

Explanation:

Asymmetric information refers to when one party in a transaction has a substantial more amount of information than the other party. This being the case it can be said that the scenario that would most likely be classified as this is a wireless service that includes unlimited minutes and texting. This is because the buyer is most likely thinking that they are getting a great deal when in fact the seller/provider has access to information that the buyer does not know, which allows them to provide this deal and still make a great profit.