Sentence examples for asymmetric information problems from inspiring English sources

However, beyond all the legal provisions, the contract is compromised when asymmetric information problems are taken into account (Bebczuk 2003).

They also face, unlike the bankruptcy system, major coordination and asymmetric information problems that may hamper their use.

Also, large bank recognize a high level of asymmetric information problems associated with lending which can lead to high level of nonperforming loans.

The literature also shows that certification is not the only way market participants overcome the asymmetric information problems posed by credence goods.

However, studies and experience have concluded that traditional agricultural insurance is a very poor and unsustainable investment in lower income countries, owing to a preponderance of small farms and typical asymmetric information problems (Hazell 1992; Collier et al. 2009).

We find that (i) contrary to existing results, step-up bonds are indeed able to mitigate the asset substitution problem, (ii) the use of a step-up feature can be a credible signal to overcome asymmetric information problems, and (iii) the optimal design as well as the conditions for the optimal use of step-up bonds is considerably different for the two explanations.

This asymmetric information problem can be solved by direct participation of the people and their attention to administrative procedures.

The regulator faces an asymmetric information problem: the firm knows current compliance costs, but the regulator does not.

Due to the asymmetric information problem, inter-temporal water allocation efficiency requires a water allocation institution that allows water right holders to store their allocated water.

As a whole, a free economy could help reduce the severity of asymmetric information, agency problems and transaction costs for IPO firms, which in turn reduce IPO underpricing (Rock, 1986; Ritter, 1987; Allen and Faulhaber, 1989; Brennan and Franks, 1997; Mok and Hui, 1998; Aggarwal and Conroy, 2000; Ljungqvist, 2007; Boulton et al., 2011; Ghoul et al., 2011; Boulton et al., 2014.

Lack of access to credit in rural areas arises as a consequence of asymmetric information and enforcement problems in the lender-borrower relation.