What it is
In economics, information asymmetry is “a situation where one party has more or better information than the other” in a transaction. The classic study is George Akerlof’s “The Market for Lemons” (1970): in used cars, the seller knows if the car is a lemon and the buyer doesn’t, so buyers assume the worst, prices drop, and good cars leave the market.
It shows up anywhere one side writes the fine print and the other side signs it.
How it shows up for me
Banks, insurers and app subscriptions live on this. When a notice is long and confusing, I assume the confusion is working for somebody, and it usually isn’t me. Reading the fine print is boring, and it’s also a way of evening the table.