The analysis and strategy of information asymmetry in e-commerce

Abstract

With the rapid development of electronic information technology and internet, e-commerce has been a new means of market transactions, which take a huge advantage in market for its convenience and openness in information acquisition, transmission, and communication and transaction costs. However, the moral hazard and adverse selection resulting from information asymmetry induce imbalance between the interests of both parties, reduce the efficiency of resource allocation and violate the fairness and justice of social development. Therefore, in order to promote and facilitate the e-commerce, this paper arms to analyze the effects and causes of the information asymmetry and propose relevant measures.

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