Information Asymmetry as a Risk Factor

Abstract

This paper explores information asymmetry as the cause of risks in decision making. The author describes the types of information asymmetry as a risk factor; describes the types of risk arising under different information asymmetries; describes the methods for minimizing such risks; brings to light the principal-agent issue; analyzes the principles of minimizing risks in the event of this issue arising; illustrates the application of special information models for minimizing risks in this issue; describes the cascade method for minimizing risks in decision making under information asymmetry.