Journal of Undergraduate Research
Keywords
reduced transaction costs, information asymmetry, E-commerce
College
Marriott School of Management
Department
Management
Abstract
Information asymmetry is usually defined as a market failure that increases transaction costs. Buyers and sellers in a typical market transaction have varying degrees of information on which to base their decisions, whether it be about the quality of the good or service, or about the optimal price of the good or service. If perfect market efficiency is the ideal, asymmetry of information usually results in too high a price being paid for a particular good or service.
Recommended Citation
Hulet, Kendall C. and Sampson, Dr. Scott
(2014)
"A Study of the Effects of Reduced Transaction Costs and Information Asymmetry in E-Commerce,"
Journal of Undergraduate Research: Vol. 2014:
Iss.
1, Article 1012.
Available at:
https://scholarsarchive.byu.edu/jur/vol2014/iss1/1012