Asymmetric Information

Overview

Asymmetric information is a condition in economics and finance in which one party to a transaction possesses more or better information than the other. This imbalance can distort markets, because the less-informed party cannot fully evaluate the quality, risk, or true value of what is being exchanged. Classic consequences include adverse selection, where poor-quality options drive out good ones because buyers cannot distinguish between them, and moral hazard, where one party takes greater risks because the costs fall on someone else. Asymmetric information helps explain a range of market phenomena, from credit rationing and insurance pricing to corporate governance and the role of signaling and disclosure. Understanding it is important for firms, investors, regulators, and policymakers seeking to design contracts, institutions, and rules that reduce informational gaps and improve the efficiency with which resources are allocated. Within the scope of model-based research, which applies quantitative and analytical frameworks to economic and financial questions, work includes studies of firm performance and financial structure, such as an analysis of capital adequacy and the moderating effect of asset growth on the performance of agricultural firms. This page gathers peer-reviewed, open-access research relevant to economic and financial modeling, including questions shaped by information and uncertainty.

Research published in this journal

1 peer-reviewed article, ranked by relevance. Each links to its DOI.

How this research is being cited

The 1 article above has been cited 2 times in the scholarly literature. Citation data via OpenAlex and Crossref, updated Jun 2026.

• Capital adequacy and corporate performance of non-financial firms: Empirical evidence from Nigeria
  O. Ogunode et al. · 2022 · Cogent Business & Management
• Capital adequacy and corporate performance of non-financial firms: Empirical evidence from Nigeria
  2022 · Cogent Business & Management

A sample of recent works citing this journal's research on Asymmetric Information, linking to each citing work.

This page summarises published research for orientation; it is not medical or professional advice.

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