1.3.4: Information Failure

• Symmetric information: Where buyers and sellers have potential access to the same information
• Asymmetric information: Where one party, usually the seller, has more knowledge compared to the other
• Information gap: Where the buyer and seller have different levels of information on a product
• Advertising can increase information gaps as it is designed to change consumer attitudes towards a product, while technology can reduce them as people can get information on a product