ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Information asymmetry is an imbalance between two negotiating parties in their knowledge of relevant factors and details. Typically, that imbalance means that the side with more information enjoys a competitive advantage over the other party.

Detailed explanation-2: -There are two types of asymmetric information – adverse selection and moral hazard.

Detailed explanation-3: -Asymmetric information refers to a situation in a contractual agreement or economic transaction where the two parties involved have disproportionate information. Restated, when one party has greater information and material knowledge than the other party in a contract, asymmetric information occurs.

Detailed explanation-4: -The basic difference between these two types of encryption is that symmetric encryption uses one key for both encryption and decryption, and the asymmetric encryption uses public key for encryption and a private key for decryption.