Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)

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Analysis and Countermeasures of Market Economy under the Background of “Information Asymmetry”

Authors
Muye Li1, *
1Beijing Normal University-Hong Kong Baptist University United International College, Xiangzhou, Zhuhai, 519088, China
*Corresponding author.
Corresponding Author
Muye Li
Available Online 31 December 2022.
DOI
10.2991/978-94-6463-036-7_192How to use a DOI?
Keywords
Information Asymmetry; Private Information; Public Information; The “Invisible Hand” of Government; Countermeasures
Abstract

In a market economy, the balance between demand and supply will be realized through the spontaneous adjustment of the “invisible hand” of price, thus realizing the optimal allocation of resources. But sometimes, due to “market failure”, relying on the market alone cannot achieve the optimal allocation of the market. Therefore, “information asymmetry” is one of the main causes of “market failure”. This paper adopts survey method and literature research method to analyze causes of asymmetry, negative effects of information asymmetry, and solutions. Through the analysis of this paper, the author finds that the emergence of information asymmetry will have a variety of negative effects on market transactions and bring moral hazard. The government can solve the information asymmetry problems by introducing policies and using high-tech methods.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
31 December 2022
ISBN
10.2991/978-94-6463-036-7_192
ISSN
2352-5428
DOI
10.2991/978-94-6463-036-7_192How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Muye Li
PY  - 2022
DA  - 2022/12/31
TI  - Analysis and Countermeasures of Market Economy under the Background of “Information Asymmetry”
BT  - Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
PB  - Atlantis Press
SP  - 1306
EP  - 1310
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-036-7_192
DO  - 10.2991/978-94-6463-036-7_192
ID  - Li2022
ER  -