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Challenges of the Information Economy: Asymmetry of Information in the Information Society

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Listed:
  • Paulo R. Silva

    (University of Évora, Department of Management and CEGI-ISEGI-Univ. Nova de Lisboa)

  • Elisabete G.S. Félix

    (University of Évora, Department of Management, CEFAGE-UE)

Abstract

This article analyses information asymmetry in conceptual terms. It presents one characterization of the asymmetric information concept, described more by a socio-economic vision of it and its relationship with the digital economy. It also frames asymmetry of information as a public good versus private good versus common good, and checks how it creates externalities. Finally, it identifies the challenges and potential policies that will mitigate the negative effects of information asymmetry.

Suggested Citation

  • Paulo R. Silva & Elisabete G.S. Félix, 2012. "Challenges of the Information Economy: Asymmetry of Information in the Information Society," CEFAGE-UE Working Papers 2012_15, University of Evora, CEFAGE-UE (Portugal).
    • Handle: RePEc:cfe:wpcefa:2012_15
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    More about this item

    Keywords

    Information; Information Asymmetry; Digital Economy; Information Society.;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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